UNIVERSITY  OF  CALIFORNIA 
AT  LOS  ANGELES 


7J 


INDUSTRIAL  ARBITRATION 


INDUSTRIAL 
ARBITRATION 


A  World-Wide  Survey  of  Natural  and  Political 

Agencies  for  Social  Justice  and 

Industrial  Peace 


By 
CARL  H.  MOTE 

AUTHOR,  WITH    JOHN    A.   LAPP,  OF 
LEARNING   TO    EARN 


INDIANAPOLIS 

THE  BOBBS-MERRILL  COMPANY 

PUBLISHERS 


Copyright  1916 
The  Bobbs-Merrill  Company 


PRESS    OF 

BRAUNWORTH   &    CO. 

BOOKBINDERS    AND     PRINTERS 

BROOKLYN,    N.   Y. 


S4-SI 


CONTENTS 

CHAPTBR  PAGE 

I    Elements  of  a  Vast  Problem 1 

II    English  Experiments 22 

till    German  Social  Justice 58 

IV    French  Experiments 87 

V    A  Country  Without  Strikes 118 

VI    Australian  Experiments 146 

VII    Official  Investigations 167 

VIII    Initial  Experiments  at  Home          ....  191 

IX    Legislation  in  United  States          ....  215 

X    Some  Devices  in  Operation 239 

XI    Interstate  Strikes 268 

XII    The  Colorado  Coal  Strike 288 

XIII  Trade  Agreements 300 

XIV  Concluding  Observations 321 

Appendix iii 

Index           xxix 


20SiS2 


INTRODUCTION 

Originally  undertaken  with  an  object  of  finding 
some  tangible  device  for  the  prevention  of  strikes 
and  lockouts,  if  any  such  device  existed,  this  work 
in  its  present  form  aims  to  present  a  consideration 
of  those  devices  now  extant.  It  aims  to  present 
certain  pertinent  facts  showing  how  the  various  de- 
vices or  political  agencies  have  worked  or  have 
failed  to  work.  The  study  is  meant  to  be  an  impar- 
tial discussion  of  industrial  conciliation  and  arbitra- 
tion and  of  social  and  industrial  conditions,  which, 
in  the  author's  opinion,  have  a  direct  bearing  on  the 
results  of  legislative  methods. 

Although  there  appears  to  be  little  real  hope  in 
the  promises  of  temporizing  processes,  certain  basic 
reforms  are  important  and  these  have  been  empha- 
sized. 

Here  in  America,  we  have  been  impressed  by  the 
thoroughness  with  which  Germany  appears  to  have 
mastered  industrial  processes.  This  scientific  thor- 
oughness was  well  understood  by  most  students  at 
the  outbreak  of  the  present  war  and  is  the  keynote 
of  the  autocratic  organization  of  the  German  Em- 


INTRODUCTION 

pi  re.  It  was  well  fitted  to  withstand  the  strain  of  a 
devastating  war.  After  the  war,  Germany  may  find 
it  necessary  to  rebuild  her  industrial  system  on  more 
nearly  democratic  foundations.  Rebuilding  on  this 
plan  will  certainly  be  necessary  if,  perchance,  the 
inefficient  democracies  of  Great  Britain  and  France 
emerge  triumphant  from  this  colossal  struggle  with 
precisely  organized  and  efficient  autocracy. 

Measures  adopted  by  the  English  government, 
since  the  beginning  of  the  war,  to  accelerate  indus- 
trial processes  and  in  which  the  workers  have 
yielded  largely  to  the  economic  demands  of  the  na- 
tion may  be  regarded  as  the  sequel,  in  a  crisis,  to  a 
program  of  social  and  industrial  legislation  success- 
fully carried  out  during  the  last  ten  or  fifteen  years. 
The  mixed  success  of  David  Lloyd-George,  how- 
ever, can  not  very  well  be  compared  to  the  success 
or  failure  of  devices  for  industrial  peace  in  normal 
times. 

With  the  exception  of  the  Chicago  street  railway 
strike,  the  settlement  of  which  in  this  country  cer- 
tainly supports  the  contention  that  industrial  peace 
is  more  probable  when  labor  is  well  organized,  there 
were  no  especially  disastrous  strikes  in  19 15  in  the 


INTRODUCTION 

United  States.  Many  new  trade  agreements  were 
ratified,  many  renewed,  and  in  a  few  cases  agree- 
ments were  broken  or  abandoned. 

The  Industrial  Relations  Commission,  created  in 
1912,  had  not  reported  when  this  volume  was  fin- 
ished. Although  the  work  of  the  commission,  espe- 
cially that  of  its  chairman,  Franklin  P.  Walsh,  heis 
been  bitterly  assailed  in  some  eminently  respectable 
quarters,  the  assaults  appear  to  have  emanated  from 
a  misunderstanding  of  the  purpose  for  which  the 
commission  was  created.  As  a  matter  of  fact,  the 
commission  has  performed  a  most  helpful  mission 
in  behalf  of  a  better  understanding  of  the  basis  of 
industrial  peace.  The  chairman  of  the  commission 
was  well  equipped  for  the  duties  of  a  rigorous  inves- 
tigation and  the  publicity  he  obtained  for  his  work 
has  been  of  the  very  greatest  value.  The  hearings 
served  to  disclose  the  "seats  of  the  mighty,"  the 
seats  of  industrial  and  political  tyranny,  and  to  sug- 
gest certain  first  steps  which  may  be  taken  as  the 
basis  of  greater  harmony  in  our  most  aggravated 
industrial  centers. 

Very  little  has  ever  been  written  to  show  the  un- 
derlying reasons  why  political  agencies,  conciliation 


INTRODUCTION 

and  arbitration  devices,  fail  to  produce  expected  re- 
sults. In  fact,  very  little  has  been  written  that  gives 
a  comprehensive  view  of  the  many  schemes  in  opera- 
tion. So  far  as  possible,  this  is  the  purpose  of  this 
volume.  Certainly,  no  subject  commands  a  more 
wide-spread  interest  to-day  than  the  waste  and 
losses  due  to  strikes  and  lockouts.  This  is  more  par- 
ticularly true  since  the  causes  are  identical  with 
those  of  our  unpreparedness  for  peace  and  our  un- 
preparedness  for  war  as  well. 

It  has  been  suggested  that  the  sources  from  which 
certain  chapters  of  this  work  are  drawn  may  not 
be  wholly  trustworthy;  that  the  reports  of  state 
boards  of  arbitration  naturally  claim  a  liberal  meas- 
ure of  success  for  this  particular  agency.  The  issue, 
however,  is  unimportant.  It  was  taken  for  granted 
that  they  would  present  their  best  case.  Assuming 
that  they  have  done  so,  they  nevertheless  have 
failed  to  establish  the  adequacy  of  conciliation  and 
arbitration  by  state  agency  and  for  this  reason  pri- 
mary measures  are  advanced  in  preparation  for  an 
era  of  fundamental  harmony  between  Capital  and 
Labor.  If  the  reader,  therefore,  is  impressed  with 
the   emphasis   placed   on   social   conditions    among 


INTRODUCTION 

workers,  in  a  volume  purporting  to  deal  with  con- 
ciliation and  arbitration,  he  should  bear  in  mind 
that  the  author  has  not  been  unmindful  that  social 
conditions  among  workers  determine  largely  the 
success  or  failure  of  conciliation  and  arbitration. 

Carl  H.  Mote. 


INDUSTRIAL  ARBITRATION 


Industrial  Arbitration 


CHAPTER  I 

ELEMENTS  OF  A  VAST  PROBLEM 

EVERY  word  that  has  ever  been  written  about 
Capital  and  Labor  has  one  focus  of  interest. 
That  focus  is  an  intangible  ideal  of  relationship  be- 
tween two  social  factors  which  everybody  has  sought 
and  nobody  seems  to  have  found.  If  any  one  were 
able  to  offer  an  ideal  it  might  not  have  been  neces- 
sary to  write  this  book.  Nobody  seems  to  know  quite 
to  what  end  we  are  working.  No  other  realm  of 
our  social  life  is  more  barren  of  definite,  universal 
ideals. 

The  struggle  for  a  larger  dish  of  porridge  among 
small  business  men,  trades  people  and  farmers  is  a 
problem  in  which  the  rest  of  the  world  does  not  seem 
to  be  particularly  interested,  but  when  a  large  body 
of  people  bind  themselves  together  In  one  way  and 

I 


2  INDUSTRIAL   ARBITRATION  i 

another  and  present  a  demand  collectively,  the  prob- 
lem assumes  a  wider  significance. 

The  question  of  a  little  more  porridge  for  one 
group  and  a  little  less  salad  for  another,  involving 
a  wide  range  of  standards  from  private  exploitation 
of  the  wage  earner  to  collectivism  and  from  col- 
lectivism to  syndicalism,  is  no  simple  one.  Actually 
it  is  the  basis  of  the  conflict  between  Capital  and 
Labor.  Whether  the  Sherman  act  should  exempt 
trade  and  labor  unions ;  whether  the  "open"  or 
"closed"  shop  shall  prevail;  what  shall  be  done 
about  sympathetic  strikes  and  jurisdictional  disputes 
between  trade  unions;  what  about  the  boycott,  the 
blacklist  and  the  picket;  what  about  sabotage? — 
these  are  all  incidental  and  minor  questions  as  com- 
pared to  that  of  how  the  profits  of  industry  will  be 
divided  between  the  master  and  his  men.  Must  the 
men  be  content  with  a  subsistence  wage  or  are  they 
entitled  to  a  subsistence  wage  plus  some  luxuries, 
and  if  so,  how  many  or  what?  Or,  is  industry  to 
be  managed  tacitly  upon  a  cooperative  basis  and  are 
the  men  to  share  with  the  master  the  profits  of  pro- 
duction? If  so,  how  are  the  profits  to  be  divided? 
The  master's  contention  is  for  the  lion's  share  of 
the  profits  because  he  risks  his  capital  in  an  enter- 
prise.   He  is  the  entrepreneur.    Yet  he  does  not  for- 


ELEMENTS  OF  A  VAST  PROBLEM   3 

bear  to  reduce  wages  when  business  is  bad  and  prof- 
its are  low.  He  would  deny  the  right  of  his  men 
to  share  the  profits  from  his  capital  and  their  labor 
when  profits  are  abnormally  high,  yet  he  would  re- 
duce their  wages  when  the  earning  power  of  his 
capital  and  their  labor  is  impaired. 

When  any  one  talks  about  industrial  arbitration, 
he  at  once  raises  every  problem  that  has  to  do  with 
the  relation  between  Labor  and  Capital.  Having 
raised  every  problem,  he  may  wrestle  with  them 
until  his  mind  grows  weary  and  his  heart  quits 
throbbing  without  ever  knowing  very  much  about 
the  point  at  which  he  is  trying  to  arrive.  The  ques- 
tion of  temperance  is  a  simple  one  beside  that  of 
meting  out  justice  to  Capital  and  Labor.  No  one 
believes  very  ardently  that  intemperance  is  defensi- 
ble, at  least  under  average  conditions,  and  the  ideal 
In  this  problem  is  a  very  definite  one.  It  may  be 
difficult  to  rid  great  cities  of  vice,  yet  most  every 
one  is  willing  to  admit  the  end  to  which  our  cru- 
saders labor.  Likewise,  men  may  differ  about  the 
modern  application  of  eugenics,  but  they  do  not  dis- 
agree about  the  worthy  purpose  of  biological  fitness. 
While  these  problems  seem  to  abide  with  us,  any 
one  who  cares  to  attempt  a  solution  is  not  wanting 
in  aims  or  objects. 


4  INDUSTRIAL    ARBITRATION 

Not  so  with  the  seemingly  irrepressible  conflict 
between  master  and  men,  employer  and  employee, 
the  bourgeoisie  and  the  proletariat,  Capital  and 
Labor ! 

Socialists  have  pitched  their  fight  against  the 
present  industrial  order  on  the  theory  that  there  is 
a  class  consciousness  in  the  industrial  world  and 
that  Capital  and  Labor  represent  fairly  the  division 
of  the  industrial  world  into  two  great  classes.  If 
the  Socialists  are  correct,  their  philosophy  must  be 
accepted  as  the  proper  basis  for  finding  the  ideal. 
If  they  are  wrong,  their  philosophy  will  not  avail 
much.  If  they  are  partly  right  and  partly  wrong, 
conclusions  must  be  tempered  by  such  limitations  as 
appear  in  an  examination  of  our  industrial  fabric. 
Socialists  proceed  on  the  theory  that  Labor  and 
Capital  have  nothing  in  common ;  that  industrial 
warfare  is  therefore  inevitable.  In  fact.  Socialists 
welcome  the  industrial  conflict  as  a  means  by  which 
the  socialized  state  is  to  be  made  a  fact. 

If  our  present  civilization  amounts  to  anything, 
it  is  difficult  to  get  the  Socialist  view-point.  Much 
may  be  said  for  and  against  the  skyscraper  and  the 
railroad,  but  it  is  hard  to  conceive  how  they  might 
have  been  builded  without  the  cooperation  of  the 
two   factors   in   industry.      Furthermore,   Socialism 


ELEMENTS    OF    A    VAST    PROBLEM       5 

espouses  the  cause  of  only  one  party  in  the  alleged 
inevitable  conflict  and  would  raise  the  proletariat 
only  to  higher  and  higher  pinnacles  of  privilege. 
Socialism  ignores  the  interests  of  the  capitalist,  the 
small  business  man,  the  farmer — the  proprietary 
class.  It  off"ers  no  hope  and  no  encouragement  to 
such  as  these.  Some  Socialists  will  dispute  this 
point  but  they  can  hardly  make  their  case  even 
though  they  were  able  to  change  human  nature,  a 
program  with  doubtful  consequences. 

After  all,  the  Socialist  may  be  nearer  right  than 
anybody  else.  He  is  so  if  the  readjustment  between 
Labor  and  Capital  is  to  be  a  readjustment  in  one 
direction  only;  if  Labor  is  to  gain  what  Capital  is 
to  give  up  and  if  the  man  who  is  part  laborer  and 
part  capitalist  is  to  be  ignored  altogether.  The  So- 
cialist program  is  replete  with  suggestions  as  to  how 
the  readjustment  may  be  accomplished.  But  we 
should  ask  ourselves  whether  the  collectivism  of  the 
Socialists  is  the  suggestion  we  want  to  follow  and 
whether  we  want  to  precipitate  the  revolution  which 
collectivism  involves.  Do  we  want  to  ignore  the  in- 
terests of  the  small  business  man,  the  farmer — the 
man  who  is  part  capitalist  and  part  laborer  and 
whose  concern  in  solving  the  problem  is  not  a  direct 
one?    Do  we  want  to  turn  our  backs  on  a  century  of 


6  INDUSTRIAL    ARBITRATION 

kaleidoscopic  industrial  and  commercial  magic  or 
suddenly  pronounce  the  era  of  private  enterprise  a 
failure?  Are  we  willing  to  admit  that  the  present 
regime  has  done  its  work  and  that  the  time  has  come 
to  usher  In  a  new  order  of  society?  Some  of  us  are 
willing  to  answer  all  these  questions  in  the  affirm- 
ative. A  majority  are  not.  All  of  which  neither 
dispels  our  confusion  nor  discloses,  amidst  the  con- 
fusion, even  the  vague  outlines  of  an  ideal. 

With  every  shade  and  measure  of  justice  possible 
from  peonage  to  syndicalism  and  with  philosophies 
which  represent  these  varying  measures  of  indus- 
trial justice,  it  is  going  to  be  rather  difficult  to  es- 
tablish an  ideal.  Some  one  may  rise  up  to  suggest 
a  middle  ground,  but  who  knows  what  a  middle 
ground  is,  or  who  believes  it  would  satisfy  anybody 
if  a  middle  ground  were  found?  Any  device  for 
industrial  arbitration  is  not  going  to  recognize  the 
validity  of  peonage.  Nor  are  the  syndicalists  likely 
to  witness  the  fruition  of  their  ideals  in  any  award 
which  an  industrial  arbitration  board  may  hand 
down.  Between  these  two  opposite  poles  there  is  a 
vast  unexplored  wilderness,  a  confusion  of  ideas  and 
ideals  that  baffles  any  man  who  seeks  a  fair  rem- 
edy.    Perhaps  we  shall  never  find  a  panacea.     Prob- 


ELEMENTS  OF  A  VAST  PROBLEM   7 

ably  we  must  content  ourselves  with  palliatives  and 
be  resigned  to  their  discovery  from  time  to  time 
under  new  and  changing  conditions.  Our  social  fo- 
cus Is  subject  to  incessant  change.  What  is  good 
for  the  present  generation  is  obsolete  for  the  next. 
Is  it  not  fair  to  believe  that  we  can  hope  only  to 
do  a  few  of  the  things  in  the  present  generation  that 
seem,  most  timely  and  proper?  Perhaps  it  is  too 
much  to  expect  to  find  a  fixed  ideal  in  these  days 
of  political,  social  and  industrial  revolution. 

With  all  that  has  been  done,  it  does  not  seem  that 
strikes  are  becoming  less  frequent  in  this  country. 
Four  of  the  most  disastrous  strikes  in  the  history 
of  the  country  have  occurred  in  the  last  few  years. 
The  strikes  of  the  French  government  employees 
in  1909,  the  English  railway  strikes  of  191 1,  the 
general  strike  in  Italy,  the  miners'  strikes  in  Colo- 
rado and  Michigan,  offer  little  encouragement  to  the 
i"nventors  of  devices  now  extant  for  adjudicating 
industrial  controversies.  Of  course,  it  may  be  that 
the  cause  of  the  trouble  is  not  industrial  unrest  so 
much  as  a  deep-seated  spirit  of  revolt  in  the  hearts 
of  men  and  akin  to  the  militancy  of  an  army,  sur- 
mounted with  banners'  and  stepping  to  the  tune  of 
martial  music.    The  world  has  been  at  peace  for  a 


8  INDUSTRIAL   ARBITRATION 

long  time  and  who  knows  but  this  so-called  indus- 
trial unrest  is  merely  the  effervescence  of  a  rampant 
spirit  of  revolution  abroad  in  the  world/ 

To  call  forth  an  idea  suggested  by  William  James 
in  his  Moral  Equivalent  for  War,  perhaps  our 
strikes  and  lockouts  are  the  immoral  equivalent  of 
war,  the  price  we  pay  for  nearly  a  half  century  of 
world  peace.  If  this  is  so,  may  we  not  expect  to  find 
a  working  basis  in  a  moral  equivalent  for  industrial 
warfare?  Frankly,  it  would  appear  that  a  moral 
equivalent  does  exist  and  I  believe  that  it  has  ap- 
peared in  the  new  spirit  of  inquiry,  examination  and 
introspection  now  causing  old  thrones  to  totter  and 
old  bulwarks  of  privilege  to  crumble.  The  search 
for  the  ideal,  we  may  find,  is  quite  as  invigorating 
as  the  pursuit  of,  or  progress  toward,  the  ideal. 

Specifically,  no  social  or  industrial  question  has 
arisen  anywhere  but  has  some  relation,  proximate 
or  remote,  to  the  political  systems  under  which  we 
live.  It  is  the  demand  for  a  larger  measure  of  so- 
called  industrial  democracy  which  has  set  on  foot 

^  When  this  was  written  the  European  war  was  merely 
threatened.  It  was  not  a  fact.  The  statement  may  stand,  how- 
ever, with  the  further  statement  that  industrial  unrest  is 
almost  certain  to  subside  with  the  end  of  the  war.  If  English 
unionists  pursue  their  struggle,  even  during  the  war,  it  goes 
to  prove  only  that  a  considerable  portion  of  the  English  work- 
ing men,  having  had  no  part  in  the  war,  are  not  yet  able  to 
accept  it  as  a  serious  crisis  in  which  their  government  is 
involved. 


ELEMENTS    OF    A    VAST    PROBLEM       9 

an  Introspective  examination  of  our  political  insti- 
tutions. Lately  we  have  learned  in  this  country 
that  political  freedom  is  no  end  in  itself;  that  it  is 
futile  unless  it  raise  to  a  plane  of  greater  independ- 
ence economically  the  mass  of  our  people. 

Former  President  Roosevelt  In  his  Neiv  Nation- 
alism and  President  Wilson  in  his  New  Freedom 
stopped  a  long  way  short  of  the  Ideal,  though  the 
former  seems  to  have  been  nearer  the  goal  because 
he  evidently  had  an  ideal  in  mind.  Mr.  Wilson  ap- 
pears to  hold  that  political  freedom  is  everything; 
that  all  the  rest  follows  after  that.  As  a  matter  of 
fact,  it  does  not  follow  necessarily,  and  experience 
shows  that  it  has  not  always  done  so,  as  witness  the 
doubtful  success  of  direct  primaries,  the  initiative, 
referendum  and  recall  In  some  states. 

But  Industrial  democracy,  so-called,  Is  no  Ideal 
at  all.  It  Is  merely  a  term  that  may  mean  every- 
thing or  nothing. 

This  country  has  proceeded  very  far  in  the  direc- 
tion of  political  independence  and  It  does  not  seem 
that  the  barriers  still  remaining  will  long  prevail. 
Men  may  resist  and  oppose  such  institutions  as  di- 
rect primaries,  the  Initiative,  referendum  and  recall, 
but  they  are  the  Inescapable  response  to  a  growing 
need  for  a  governrnent  which  will  concern  itself 


10  INDUSTRIAL    ARBITRATION 

with  the  intimate  and  human  affairs  of  life  rather 
than  the  "red  herrings"  of  obsolete  political  plat- 
forms. 

"Give  the  people  more  power,"  is  a  current  slogan 
which,  however,  is  meaningless  unless  the  people 
are  educated  to  use  the  new  power  wisely.  It  is 
not  sufficient  to  give  the  people  more  power  with- 
out tangible  suggestions  as  to  what  they  are  to  do 
with  it.  Fortunately,  a  program  is  not  wanting — 
a  program  that  has  a  direct  bearing  on  the  subject 
of  this  book;  a  program  that,  to  some  degree,  an- 
swers the  question,  "What  shall  we  do  to  be  saved 
from  the  inhumanity  and  wastefulness  of  industrial 
warfare?" 

It  is  a  sweeping  program  of  social  and  industrial 
measures  that  will  take  care  of  our  most  aggravated 
examples  of  industrial  iniquity.  It  is  a  program 
of  primary  importance  and  fundamental  relation  to 
the  worker's  welfare.  But  it  is  no  Utopia  because 
there  is  nothing  about  it  that  is  fixed,  nothing  per- 
manent, nothing  very  definite. 

The  mere  fact  that  we  have  failed  to  find  a  pan- 
acea to  curb  inordinate  ambitions  and  aspirations 
of  master  and  men  is  no  proof  that  the  history  of 
a  world-wide,  century-old  effort  to  find  such  a  pan- 
acea is  wholly  uninteresting.    Even  though  we  find 


ELEMENTS    OF    A    VAST    PROBLEM     ii 

legislative  taboos  In  England,  France,  Germany, 
Australia,  New  Zealand,  Canada  and  our  own  coun- 
try have  been  almost  universally  unsuccessful  in  se- 
curing Industrial  peace,  an  examination  of  those 
failures  will  be  a  source  of  helpfulness  to  the  stu- 
dents of  our  paramount  world  problem.  If  the 
world-wide  failure  of  the  taboo  Is  established,  per- 
haps that  failure  will  be  suggestive  of  additional 
steps  that  may  be  taken  to  accomplish  what  the  taboo 
has  failed  to  do. 

There  is  just  one  Instance,  New  Zealand,  where 
the  taboo  has  worked  better  than  anywhere  else.  It 
may  be  interesting  to  seek  the  causes  of  its  success. 
It  may  be  a  source  of  enlightenment  to  find  that  the 
taboo  has  worked  well  in  New  Zealand  and  Aus- 
tralia because  it  was  not  much  heeded  there;  because 
Its  adoption  was  prefaced  by  a  code  of  primary  and 
constructive  industrial  and  social  measures,  in  oper- 
ation when  the  taboo  was  invented ;  also,  because 
that  code  has  been  supplemented  from  time  to  time 
by  a  comprehensive  program  of  measures  that  re- 
flects the  most  intimate  concern  of  the  government 
In  the  health,  well-being  and  comfort  of  its  work- 
ing people. 

But  we  can  not  be  quite  sure  that  the  workers  of 
New  Zealand  will*  always  be  willing  to  accept  a 


12  INDUSTRIAL    ARBITRATION 

wage  which  constitutes  a  comparatively  small  share 
of  the  profits  of  industry.  Who  is  able  to  say  that, 
even  though  workers  anywhere  are  assured  of  every 
comfort  of  life,  they  will  be  content  with  comforts, 
alone?  Who  knows  when  they  will  rise  up  and  de- 
mand to  share,  with  the  man  who  risks  his  capital 
and  directs  enterprise,  the  luxuries  that  he  enjoys? 
Under  our  present  economic  order  it  is  difficult  to 
maintain  that  any  particular  measure  of  industrial 
justice,  short  of  a  measure  which  gives  the  worker 
an  equal  share  with  the  master,  will  always  be  satis- 
factory to  the  worker.  Any  one  who  sets  a  limit 
short  of  this  mark  must  do  so  arbitrarily,  and  do  so 
disregarding  the  economic  tendencies  of  several  cen- 
turies. If,  however,  we  find  certain  things  which 
experience  seems  to  show  ought  to  be  done  now,  may 
we  not  leave  the  discovery  of  our  Utopia  to  the  fate 
of  generations,  wiser  by  our  experiments  and  our 
experience? 

Among  many  peoples,  it  may  be  surprising  to  find 
the  endeavor  to  avert  controversies  and  disturbances 
has  attributes  of  striking  likenesses.  Monopolistic 
combinations  of  Capital  and  of  working  people.  In- 
cluding the  right  of  workers  to  organize,  restriction 
of  apprentices,  an  unskilled  surplus,  wages,  hours 
of  labor,  cost  of  living,  sympathetic  strikes,  Juris- 


ELEMENTS    OF    A    VAST    PROBLEM     13 

dictlonal  disputes,  sabotage,  the  boycott,  the  black- 
list and  a  score  of  other  less  important  manifesta- 
tions of  an  unceasing  conflict — all  are  problems 
common  to  every  country  where  industrial  develop- 
ment has  reached  an  advanced  stage. 

1.  Most  people  acquiesce  in  the  wisdom  of  cap- 
italistic combinations.  Even  those  who  oppose  are 
not  able  to  present  an  alternative  that  squares  with 
the  principle  of  economic  production.  By  no  means 
is  this  the  case  with  labor  organizations.  Combina- 
tions of  Capital  still  resist  combinations  of  Labor  and 
the  so-called  public  either  looks  on  with  ill-con- 
cealed disgust  or  is  openly  arrayed  on  one  or  the 
other  side  of  the  controversy. 

2.  The  right  of  Labor  to  organize  precipitates 
a  clash  between  two  opposing  theories  in  industry : 
First,  the  arbitrary  right  of  the  employer  to  control 
every  element  of  his  enterprise,  the  privilege  of  get- 
ting his  labor  where  he  can  get  it  cheapest  and  of 
imposing  whatever  conditions  his  humanity  or  in- 
humanity inspires;  secondly,  the  right  of  the  work- 
ers to  combine  for  mutual  self-help  against  their 
employer  and  to  resist  his  will  with  the  strike,  the 
boycott  and  the  picket,  either  peaceably  or  by  force. 
One  group  of  Socialists  adheres  to  peaceful  meth- 
ods.     Another   group    openly    advocates    violence. 


14  INDUSTRIAL   ARBITRATION 

The  latter  group  comprises  the  syndicalists,  whose 
most  powerful  organization  in  this  country  is  the 
Industrial  Workers  of  the  World. 

Trade  and  labor  unions  have  served  to  raise 
wages  and  working  conditions  of  their  membership, 
but  they  accomplish  little  directly  for  the  working 
men  outside  the  pale  of  organization.  In  the  United 
States,  not  to  exceed  one-sixth  of  the  wage  earners 
belong  to  organizations  which  practise  collective 
bargaining.  Five-sixths  of  the  wage  earners  con- 
stitute the  surplus  available  supply  of  labor.  It  is 
here  that  wages  and  working  conditions  are  subject 
to  the  caprice  of  the  employer.  It  is  here  that  he 
is  able  to  make  his  will  the  law  of  industry.  This 
fact  may  be  interpreted  as  an  argument  in  favor  of 
organization.  But  conceding  the  thorough  organ- 
ization of  all  working  people,  many  problems  yet 
remain  and  trade  unionism  is  not  wholly  satisfactory 
in  a  country  where  individualism  has  been  the  dom- 
inant stepping  stone  of  human  endeavor,  because  it 
puts  the  efficient  and  the  inefficient  worker  in  the 
same  straight  jacket.  There  is  something  dull  and 
prosaic  in  the  idea  of  putting  every  man  on  the 
same  plane  and  limiting  his  progress  by  the  prog- 
ress of  the  group  or  crowd  in  which  he  toils.  There 
is  something  repugnant  to  every  man  in  the  tyranny 


ELEMENTS    OF    A    VAST    PROBLEM     15 

of  majorities;  something  discouraging,  something 
devitalizing.  On  the  other  hand,  the  trade  union 
Is  an  institution  by  which  a  considerable  number  of 
workers  have  been  able  to  raise  themselves  out  of 
the  slough  of  despondency ;  an  expression  of  chaotic 
and  cataclysmic  mutterlngs  and  munnurlngs  re- 
duced to  a  philosophy,  translated  into  a  "cause." 
The  organization  of  one-sixth  of  the  workers,  it  may 
be  said,  points  the  way  to  the  other  five-sixths.  Or- 
ganization is  the  stepping  stone  of  the  unorganized. 
It  Is  a  command  to  the  unorganized  to  go  and  do 
likewise. 

3,  Restriction  of  apprentices  is  merely  one 
method  by  which  trade  unions  seek  to  limit  the  sup- 
ply of  labor  within  a  particular  trade  and  to  protect 
themselves  against  recruits  from  the  unskilled  sur- 
plus. 

4.  Wages  and  living  are  the  subject  of  endless 
controversy.  Not  only  does  the  question  of  wages 
involve  the  division  of  porridge  at  a  particular  time, 
but  it  Involves  frequent  alterations  in  the  portions 
because  the  cost  of  living  is  never  fixed  and  work- 
ing people  have  very  much  to  say  about  the  pur- 
chasing power  of  their  wages.  In  the  last  twenty 
years  in  this  country,  the  tendencies  of  wages  and 
living  both  have  been  upward,  but  the  rise  in  wages 


i6  INDUSTRIAL    ARBITRATION 

has  not  been  so  great  as  the  rise  in  living  and  this 
is  the  cause  of  unceasing  controversy  and  intermit- 
tent conflict.     It  is  likewise  true  the  world  over. 

5.  Hours  of  labor  have  a  double-barreled  signifi- 
cance. Not  only  does  the  reduction  of  hours  afford 
the  worker  more  time  for  leisure  and  the  enjoyment 
of  life,  as  leisure  reflects  enjoyment,  but  reduced 
hours  may  mean  and  sometimes  does  mean  a  cur- 
tailment of  labor's  output,  thus  increasing  the 
demand  for  labor  and  consequently  the  rate  of 
wages. 

6.  Sympathetic  strikes — the  stoppage  of  work  In 
one  industry  to  promote  the  success  of  a  grievance 
in  another — represent  nothing  more  than  many 
units  with  common  aims  acting  together.  Sym- 
pathetic strikes  are  the  answer  of  Labor  to  the  secret 
or  open  combinations  of  Capital.  One  is  no  more 
defensible  than  the  other.  If  the  issue  of  wages, 
hours  and  working  conditions  is  one  to  be  settled 
arbitrarily  by  employers,  are  not  employees  war- 
ranted in  summoning  their  combined  strength  to 
defeat  the  imperious  ultimatum  of  the  employer? 
If  one  has  the  capitalistic  view-point,  he  is  not  very 
likely  to  indorse  a  sympathetic  strike,  but  if  he  has 
another  view-point  he  is  likely  to  believe  the  sym- 


ELEMENTS    OF    A    VAST    PROBLEM     17 

pathetic  strike  amounts  to  a  fair  method  of  retalia- 
tion. 

7.  Then,  there  are  the  jurisdictional  disputes  be- 
tween labor  and  trade  organizations  which  the  sym- 
pathetically-minded may  regard  as  one  of  the  un- 
fortunate by-products  of  a  very  wise  system,  and 
which  the  contrary-minded  are  likely  to  regard  with 
embittered  opposition. 

8.  Sabotage,  as  openly  urged  by  one  working 
men's  organization,  is  a  deplorable  expression  of  a 
class  grievance.  But  can  we  say  very  much  in  be- 
half of  an  Industrial  epoch  that  gives  birth  to  an 
expression  of  violence?  Is  it  not  likely  that  some- 
where we  have  failed — failed  to  erect  the  proper 
safeguards  against  the  distress  of  a  not  inconsider- 
able mass  of  humanity?  Are  we  to  believe  blindly 
that  there  are  no  excuses  for  and  no  extenuating  cir- 
cumstances connected  with  the  philosophy  which 
espouses  direct  action?  The  history  of  strikes  has 
been  written  in  blood.  It  is  a  history  replete  with 
nauseous  disclosures  of  working  conditions.  Nor 
must  we  forget  the  private  detectives  and  special 
police  of  those  employers  who  maintain  a  despicable 
system  of  espionage  in  season  and  out  of  season, 
strike  or  no  strike. 


i8  INDUSTRIAL    ARBITRATION 

So  long  as  nations  fly  at  one  another's  throats  for 
some  commercial  advantage  of  doubtful  value,  may 
we  not  expect  the  worker  to  believe  he  has  the  right, 
even  though  he  dare  not  exercise  it,  to  use  force,  if 
necessary,  to  obtain  a  minimum  measure  of  justice? 
We  eulogize  the  heroes  of  past  wars  but  we  condemn 
with  scorn  the  man  who  resorts  to  less  drastic  meas- 
ures to  win  a  strike.  Yet  the  worker  has  little,  if 
anything,  to  gain  by  a  war  and  everything  to  gain 
by  a  strike.  In  a  strike,  he  may  win  the  right  to 
meet  his  employer  on  equal  terms  and  freely  to  bar- 
gain with  him  as  to  wages,  hours  and  working  con- 
ditions. In  which  case  he  knows  his  employer  will 
not  find  it  expedient  to  say,  "If  you  don't  like  your 
job,  you  may  quit." 

"The  resistance  of  syndicalism  is  a  new  kind  of 
revolt — more  dangerous  to  capitalism  than  the  de- 
mand for  higher  wages,"  says  Walter  Lippmann. 
And  again:  "You  can  not  treat  the  syndicalists  like 
cattle,  because,  forsooth,  they  have  ceased  to  be  cat- 
tle. 

"We  are  not  civilized  enough,"  says  Lippmann 
in  another  place,  "to  meet  an  issue  before  it  becomes 
acute.  We  were  not  intelligent  enough  to  free  the 
slaves  peacefully — we  are  not  intelligent  enough  to- 
day to  meet  the  industrial  problem  before  it  devel- 
ops a  crisis.  That  is  the  hard  truth  of  the  matter. 
And  that  is  why  no  honest  student  of  politics  can 
plead  that  social  movements  should  confine  them- 


ELEMENTS    OF    A    VAST    PROBLEM     19 

selves  to  argument  and  debate,  abandoning  the  mil- 
itancy of  the  strike,  the  insurrection,  the  strategy  of 
social  conflict." 

The  eight  propositions  already  cited  comprise  the 
greatest  problems  with  which  industrial  conciliation 
and  arbitration  has  to  do.  They  are  not  the  only 
problems.  In  fact,  there  are  scores  of  problems  per- 
taining to  particular  industries  about  which  the  lay- 
man never  hears.  The  boycott,  the  blacklist  and  the 
picket  have  been  mentioned.  These  three  problems 
are  secondary  but  there  remains  a  vast  number  of 
others,  if  not  secondary,  then  tertiary,  or  still  fur- 
ther removed  from  the  arena  of  the  conflict. 

Since  the  industrial  conflict  involves  deep-seated 
causes  and  since  it  has  to  do  with  every  element  of 
the  social  organization,  every  factor  in  social  prog- 
ress, we  shall  know  very  little  about  industrial  con- 
ciliation and  arbitration  unless  we  view  it  in  the 
light  of  the  social  and  political  institutions  prevail- 
ing where  experiments  have  been  carried  on.  We 
must  not  forget  that  we  are  dealing  with  a  problem 
having  its  roots  deep  in  the  past — deep  in  centuries 
of  ignorance,  political  inequality,  economic  bondage. 
Nor  should  we  be  disappointed  if  we  fail  forthwith 
to  develop  a  millennial  solution  of  the  problem  since 
we  are  not  so  far  removed  from  the  ignorance  and 


20  INDUSTRIAL   ARBITRATION 

inequality  of  past  centuries.  But  this  is  the  excuse, 
in  each  instance,  for  presenting  a  kaleidoscopic  view 
of  social  and  political  life  in  the  several  countries. 

This  volume  attempts  to  present  in  concise  form 
a  history  of  conciliation  and  arbitration  in  England, 
Germany,  France,  New  Zealand,  Australia,  Canada 
and  the  United  States,  together  with  an  analysis  of 
the  operation  of  the  several  schemes.  No  system 
so  far  devised  has  worked  with  any  conspicuous  de- 
gree of  perfection.  If  conciliation  and  arbitration 
have  not  done  what  they  were  designed  to  do,  the 
reasons  ought  to  appear  from  the  analysis  of  the 
several  experiments.  However  imperfect  the 
schemes  may  be,  an  effort  has  been  made  to  deal 
sympathetically  with  them.  Conciliation  and  arbi- 
tration by  state  agency  may  be  regarded  as  a  mile- 
post  of  the  greater  movement,  contributing  in  some 
measure  to  the  ultimate  solution  of  the  problem  and 
the  realization  of  harmony  in  the  industrial  world. 

Although  conciliation  and  arbitration  function  to 
the  same  end,  they  are  different  processes.  Con- 
ciliation Is  an  Informal  method  of  settling  industrial 
disputes  or  of  preventing  them.  Conciliation  may 
be  carried  on  between  the  parties,  or  representatives 
of  the  parties,  directly  or  through  unofficial  or  state 
agencies.     With  the  rise  of  trade  unions,  we  have 


ELEMENTS    OF    A    VAST    PROBLEM     21 

seen  Labor,  acting  through  its  committees  of  the 
trade  organization,  barter  with  Capital  directly  in 
joint  conference.  We  call  this  collective  bargaining. 
We  have  also  seen  it  join  with  Capital,  without, 
however,  any  formal  agreement  to  that  effect,  in 
accepting  the  good  offices  of  third  parties.  Arbi- 
tration is  a  formal  process.  In  those  countries  where 
the  submission  of  matters  in  controversy  is  not  com- 
pulsory, it  generally  follows  a  signed  agreement  in 
which  both  parties  bind  themselves  to  carry  out  the 
award.  Formal  hearings  are  held  in  which  testi- 
mony is  taken  and  a  written  award  is  made,  inform- 
ing each  party  what  it  is  to  do.  Where  arbitration 
is  carried  on  under  sanction  of  law,  the  award  may 
be  and  generally  is  legally  binding. 


CHAPTER  II 


ENGLISH   EXPERIMENTS 


NDUSTRIAL  conciliation  and  arbitration,  like 
many  economic,  social  and  political  institutions 
now  on  trial  in  this  country,  has  a  European  origin. 
It  was  an  invention  of  the  last  century,  but  the  germ 
of  the  idea  is  to  be  found  in  the  rise  of  the  indus- 
trial state.  The  beginnings  of  the  industrial  state 
are  to  be  found  in  England,  Germany  and  France, 
and  date  from  the  sixteenth  century. 

Since  the  operation  of  every  device  for  concilia- 
tion and  arbitration  is  intimately  dependent  upon 
basic  political,  social  and  industrial  conditions,  all 
of  which,  in  turn,  reflect  the  temper  of  working  peo- 
ple and  the  masters  of  enterprise,  it  is  necessary 
to  examine  the  background  of  English  society  in 
connection  with  the  study  of  particular  devices  for 
conciliation  and  arbitration. 

When  feudalism  gave  way  to  commercialism  in 
England,  the  guild  began  to  appear.  The  merchant 
guilds  were  associations  of  traders  and  within  cer- 

22 


ENGLISH    EXPERIMENTS  23 

tain  fixed  jurisdiction  they  enjoyed  a  complete  mon- 
opoly of  manufacture  and  trade  under  special  char- 
ters from  the  Crown.  For  instance,  one  guild  held 
control  of  the  trade  of  Oxford  and  suburbs  and 
another  of  cloth-dyeing  in  Nottingham  and  ten 
leagues  around. 

Craft  guilds  or  associations  of  artisans  sprang  up 
about  the  same  time.  Several  English  towns  had 
weavers'  guilds  as  early  as  1130.  They  appeared 
as  rivals  of  the  merchant  guilds  and  finally  suc- 
ceeded in  breaking  up  the  monopolies  enjoyed  by 
the  merchant  guilds.  They  were  legalized  by  the 
Crown  about  the  middle  of  the  twelfth  century. 

In  the  beginning,  the  guilds  were  guardians  of 
commercial  morality,  protecting  the  people  against 
short  weights  and  shoddy  material.  They  per- 
formed social,  educational  and  religious  functions, 
acted  as  benefit,  Insurance  and  burial  societies. 
Many  of  the  guilds  became  wealthy,  acquiring  large 
sums  of  money,  vast  tracts  of  land,  buildings  and 
colleges.  The  guild  lands,  with  the  exception  of 
those  held  by  the  London  guilds,  were  confiscated 
during  the  reign  of  Edward  VI. 

Provisions  for  the  settlement  of  Individual  disputes 
between  master  and  workmen  were  common  in  Eng- 
lish laws  as  far  back  as  the  middle  of  the  sixteenth 


24  INDUSTRIAL    ARBITRATION 

century.  Beginning  with  the  Statute  of  Apprentices 
in  1562  and  ending  with  a  special  act  of  Parliament 
in  I  747,  these  laws  simply  referred  all  disputes  be- 
tween employer  and  employee  to  the  local  magis- 
trate for  adjudication.  Reference  of  disputes  was 
compulsory  on  the  request  of  either  party  and  de- 
cisions likewise  were  binding  upon  both  parties  and 
enforceable  by  proceedings  of  distress  and  sale  or 
imprisonment. 

The  Statute  of  Apprentices,  which  grew  out  of 
monopolistic  labor  conditions  fostered  by  the  guilds, 
was  designed  as  a  legal  restraint  on  wages.  Among 
other  things,  it  provided  that  no  person  should,  un- 
der a  penalty  of  forty  shillings  a  month,  use  or 
occupy  any  art,  mystery  or  manual  occupation  with- 
out a  previous  seven  years'  apprenticeship.  The 
number  of  apprentices  was  limited  to  three  to  one 
journeyman,  and  for  every  additional  apprentice 
after  the  third,  another  journeyman  was  required. 
The  act  probably  would  have  favored  traders  and 
artisans  by  limiting  the  supply  at  the  expense  of 
non-apprenticed  labor,  except  that  the  justices  in 
Quarter  Sessions  were  empowered  to  fix  the  rate 
of  wages  in  husbandry  and  handicrafts.  This  act 
was  one  of  the  contributing  causes  to  the  wide- 
spread pauperism  which  followed.     During  the  pe- 


ENGLISH    EXPERIMENTS  25 

riod  the  statute  was  In  force,  the  residuum  of  labor 
was  driven  into  agriculture  or  into  new  industries 
where  apprenticeship  did  not  prevail. 

England  has  had  one  notable  experience  in  an 
effort  to  compel  working  men  to  labor  when  they 
are  otherwise  disposed.  Because  that  experience  is 
suggestive  of  the  consequences  of  compulsory  arbi- 
tration if  attempted  in  this  country,  it  is  of  interest 
here. 

Wages  rose  enormously  after  the  Black  Plague 
of  1348  and  Parliament  passed  the  Statute  of  La- 
borers in  135 1.  This  act  sought  to  compel  every 
man  and  woman  under  sixty  years  of  age  to  serve 
the  first  employer  who  should  demand  his  or  her 
services  and  at  the  prevailing  wage  before  the 
plague,  or  in  1347.  Fines  and  imprisonment  were 
provided  as  punishments  for  violations  of  the  act. 
The  statute  also  attempted  to  regulate  prices.  It 
was  a  miserable  failure  and  accomplished  none  of 
the  objects  designed  by  its  f  ramers.  Additional  leg- 
islation Increasing,  the  severity  of  the  statute  was 
just  as  futile,  just  as  foolhardy. 

With  the  rise  of  the  industrial  state  and  especially 
the  cotton  industry  in  England,  disputes  between 
employer  and  employee  multiplied.  The  old  hand- 
loom  weaver  was  in  sore  straits  with  the  Introduce. 


26  INDUSTRIAL    ARBITRATION 

tion  of  machinery  in  the  cotton  industry,  and  skilled 
artisans  in  the  textile  fabrics,  thrown  out  of  em- 
ployment, suffered  the  severest  penury.  The  work- 
ers looked  upon  the  introduction  of  machinery  with 
deep-seated  hostility.  Riots  were  frequent  and  ma- 
chinery was  destroyed  by  mobs  of  working  men. 
Stocking  and  lace  frames,  installed  at  Nottingham, 
were  broken  up  by  the  imperiled  workmen,  when  a 
law  of  1812,  extending  the  scope  of  an  act  of  1727 
that  had  applied  to  stocking  frames,  specifically 
made  it  a  capital  offense  to  destroy  machinery. 
Lord  Byron,  In  denouncing  the  act  in  Parliament, 
insisted  that  the  jury  to  try  the  frame  breakers 
should  consist  of  twelve  butchers  and  that  a  Judge 
Jefreys  should  preside  on  the  bench. 

"We  are  accustomed  to  measure  prosperity  by 
the  millions  of  dollars'  worth  of  cheese  and  butter 
and  machinery  and  leather  put  on  the  market,"  says 
John  R.  Commons.  "Let  us  measure  it  by  the  thou- 
sands of  men  and  women  turned  out  and  placed 
upon  the  labor  market." 

If  we  are  to  measure  the  prosperity,  or  lack  of 
it,  in  English  society  during  the  first  half  of  the 
nineteenth  century,  we  must  examine  the  impov- 
erished condition  of  the  English  working  people  at 
that  time.    We  must  remember  that  England  at  the 


ENGLISH    EXPERIMENTS  27 

beginning  of  the  French  Revolution  was  still  agra- 
rian in  industry;  that  the  government  was  still  aris- 
tocratic, and  that  the  spirit  of  individualism  was 
the  prevailing  note  of  philosophical  thought.  But 
we  must  know  also  that  a  change  had  been  taking 
place;  that  about  half  the  population  was  urban  in 
1770.  This  proportion  is  in  strong  contrast  with 
the  vocational  divisions  in  1688  when  it  was  esti- 
mated that  eighty  per  cent,  of  the  population  was 
engaged  in  agriculture  and  only  twenty  per  cent,  in 
the  trades  and  handicrafts;  when  seventy-eight  per 
cent,  of  the  annual  income  of  the  nation  was  from 
agriculture,  but  fourteen  per  cent,  from  the  trades 
and  only  eight  per  cent,  from  the  handicrafts. 

More  than  a  century,  agriculture  and  trade  had 
enjoyed  liberal  subsidies  from  the  government  while 
the  interests  of  the  v/orking  man  had  been  wholly 
subordinated  or  totally  disregarded.  In  fact,  the 
laws  against  combination,  emigration  and  mobility 
were  aimed  specifically  to  restrict  the  liberties  of  the 
working  man.  Doctor  G.  Von  Schulze-Gaevernitz 
relates*  that  the  system  of  state  nursing  became  so 
prodigal  that  a  regulation  in  behalf  of  the  woolen 
trade  required  that  no  corpse  was  to  be  interred 
without  a  woolen  shroud.      At  the  same  time  the 


^Social  Peace,  p.  5. 


28  INDUSTRIAL    ARBITRATION 

anti-combination  law  of  1799  aimed  at  the  "Insti- 
tution of  Halifax"  had  failed  to  accomplish  its  pur- 
pose because  exemptions  were  recognized  under  the 
Statute  of  Apprentices,  which,  however,  was  sus- 
pended in  1802  and  repealed  in  1814. 

The  consolidation  of  small  farms  into  great  es- 
tates marked  the  decline  of  agriculture  and  forced 
the  small  landholder  into  the  towns  where  the  labor 
market  was  already  overrun.  Immigration  during 
the  first  half  of  the  last  century  from  Ireland,  where 
the  standard  of  living  was  lower,  further  accentu- 
ated the  distress  of  the  English  working  people, 
tending  to  augment  the  number  of  unemployed  and 
to  reduce  wages  to  the  minimum  level  of  subsistence. 

We  must  remember  that  the  development  of  steam 
for  power  shifted  the  seat  of  industry  from  the 
banks  of  rivers  to  the  towns  where  labor  was  more 
plentiful  and  that  the  town  population  increased 
rapidly  during  the  last  years  of  the  eighteenth  and 
first  years  of  the  nineteenth  century — at  a  much 
faster  rate  than  the  population  of  the  whole  coun- 
try. Between  1801  and  1839  the  population  of  the 
whole  country  increased  about  fifty  per  cent,  while 
such  cities  as  Liverpool,  Manchester  and  Glasgow, 
during  the  period   from    1801    to    1831,   increased 


ENGLISH    EXPERIMENTS  29 

from  one  hundred  thirty-eight  to  one  hundred  sixty- 
one  per  cent. 

The  toilers  were  entirely  unprotected  from  un- 
sanitary workshops  and  accident  from  defective  ma- 
chinery. Disease  was  far  more  common  among  the 
working  people  than  among  other  classes  and  there 
was  no  relief.  Education  was  almost  wholly  neg- 
lected by  the  state,  the  workers  being  dependent 
therefor  upon  the  philanthropy  of  the  church. 

A  working  day  of  twenty  hours  was  not  excep- 
tional, and  hours  were  practically  unlimited  between 
1790  and  1820.  Children,  obtained  in  large  gangs 
from  the  poor  law  guardians,  worked  In  twelve- 
hour  shifts.  As  late  as  i860,  evidence  is  cited  in 
Karl  Marx's  Capital  to  show  that  in  the  lace  trade, 
children  of  nine  or  ten  years  were  "dragged  from 
their  squalid  beds  at  two,  three  or  four  o'clock  in 
the  morning  and  compelled  to  work  for  a  bare  sub- 
sistence until  ten,  eleven  or  twelve  at  night,  their 
limbs  wearing  away,  their  frames  dwindling,  their 
faces  whitening  and  their  humanity  absolutely  sink- 
ing Into  a  stone-like  torpor,  utterly  horrible  to  con- 
template." The  conditions  under  which  pottery  was 
made  were  especially  bad  and  half  the  workers  in 
the  manufacture  of  matches  were  children  under 


3©  INDUSTRIAL    ARBITRATION 

thirteen  and  young  persons  under  eighteen,  accord- 
ing to  Marx.  Bakeries,  cotton  manufactories,  blast 
furnaces,  forges  and  plate  rolling-mills  exacted  a 
terrible  toll  of  human  energy  and  sapped  the  vitality 
alike  of  men,  women  and  children.  According  to 
Lord  Ashley  only  twenty-three  per  cent,  of  the  fac- 
tory hands  in  1839  were  adult  males.  The  remain- 
ing seventy-seven  per  cent,  were  women  and  chil- 
dren. 

Naturally,  there  was  very  little  social  peace  dur- 
ing the  first  years  of  the  century,  although  the  work- 
ers were  little  organized.  Many  "rebellions  of  the 
belly,"  waged  by  hungry  hordes  bearing  banners  of 
"Bread  or  Blood,"  were  suppressed  by  the  military 
authorities  between  18 10  and  1820. 

With  the  founding  of  the  Working  Men's  Asso- 
ciation in  1836  in  London,  the  avowed  object  of 
which  was  to  obtain  universal  suffrage,  chartism 
was  born.  An  address  sent  out  to  working  men 
demanded  "an  equality  of  political  rights,"  in  order 
that  they  might  probe  "social  ills  to  their  source," 
and  "apply  effective  remedies  to  prevent,  instead  of 
unjust  laws  to  punish."  This  so-called  People's 
Charter  attracted  millions  of  working  men  who  first 
undertook  to  gain  their  ends  by  peaceful  means. 
When  the  Parliament  rejected  a  petition,  bearing  a 


ENGLISH    EXPERIMENTS  31 

million  and  a  quarter  signatures  and  praying  for 
the  adoption  of  universal  suffrage,  a  general  strike 
was  called.  The  strike  failed.  Other  petitions  fol- 
lowed and  were  similarly  rejected. 

Upon  the  outbreak  of  the  French  Revolution  of 
1848,  disturbances  were  renewed  and  for  a  year 
London  was  guarded  from  invasion  of  the  workers 
by  soldiers  and  special  constables. 

"The  general  public,"  says  Doctor  G.  Von 
Schulze-Gaevernitz,  "understood  nothing  of  the 
movements  going  on  amongst  the  working  classes. 
As  usual  they  attributed  everything  to  the  personal 
Influence  of  a  few  demagogues.  They  took  what 
comfort  they  could  get  from  the  idea  that  the  peo- 
ple were  being  'inflamed'  and  'misled'  without  con- 
sidering that  a  great  and  wide-spread  revolutionary 
movement  does  not  show  itself  without  a  cause,  and 
never  without  some  fault  on  the  part  of  the  powers 
against  which  it  is  directed." 

We  pause !  Wc  are  almost  startled  by  the  accu- 
racy with  which  Doctor  Von  Schulze-Gaevernitz' 
description  of  the  general  public  in  England  sixty 
years  ago  fits  the  average  American  small  proprietor 
with  capitalistic  Inclinations  when  a  strike  to-day 
interferes  with  his  business  or  the  business  of  some 
industrial  potentate  whom  he  is  trying  to  ape. 

The  agitation  for  shorter  hours  of  labor  began 


32  INDUSTRIAL    ARBITRATION 

about  1 796  when  a  board  of  health  appointed  in 
Manchester  brought  in  a  startling  report.  During  the 
year  1802,  Sir  Robert  Peel  introduced  and  had 
passed  a  bill  applying  only  to  pauper  apprentices, 
which  limited  the  hours  of  little  children  to  twelve 
a  day.  There  was  a  parliamentary  inquiry  into  the 
subject  of  hours  of  labor  in  181 5,  while  an  act  of 
1 81 9  forbade  the  employment  of  children  under  nine 
and  fixed  the  hours  of  children  from  nine  to  six- 
teen at  seventy-two  a  week,  exclusive  of  meals. 
Trade  unions,  having  been  given  the  right  to  incor- 
porate in  1824,  the  agitation  took  on  additional  im- 
portance. Sir  John  Hobhouse  obtained  a  Saturday 
half  holiday  in  1825. 

But  it  was  even  more  difficult  to  get  the  new  laws 
enforced  than  to  obtain  their  enactment.  The  local 
magistrates  were  notoriously  under  the  influence  of 
the  employers,  and  justice  was  arbitrarily  distorted 
to  the  prejudice  of  the  working  classes.  A  justice 
of  the  peace  was  wholly  unfit  to  act  as  mediator 
between  employer  and  employee,  because  he  was 
always  a  party  in  interest. 

From  1800  to  1824,  Robert  Owen,  who  later  be- 
came famous  on  two  continents,  was  working  out 
his  industrial  reforms,  first  at  Manchester  and  later 
at  New  Lanark,  Scotland.    At  New  Lanark,  he  ban- 


ENGLISH    EXPERIMENTS  33 

ished  the  storekeepers,  removed  the  taverns  and  gin- 
mills,  and  erected  cozy  dwellings  for  his  employees. 

Owen  was  one  of  the  first  men  of  the  last  century 
to  demand  a  comprehensive  scheme  of  legislation 
for  the  protection  of  the  working  men.  He  favored 
a  limitation  on  the  hours  of  labor  in  mills  to  twelve 
a  day,  including  one  and  one-half  hours  for  meals; 
the  prohibition  of  the  employment  of  children  un- 
der ten  in  mills  and  then  only  six  hours  a  day  and 
insisted  that  children  should  not  be  admitted  into 
mills  after  ten,  unless  able  to  read  and  write  and 
understand  the  first  four  rules  of  arithmetic,  and 
girls  unless  able  to  sew.  Also,  Owen  demanded  uni- 
versal compulsory  education. 

The  employment  of  persons  under  twenty-one  in 
the  cotton  trade  at  night  was  forbidden  in  1831. 
Two  years  later,  due  to  the  activity  of  Lord  Ash- 
ley, the  working  hours  of  children  under  thirteen 
were  limited  to  forty-eight  a  week.  As  a  result  of 
the  investigation  of  the  commission  appointed  in 
1840,  the  mining  act,  forbidding  the  employment 
of  children  under  ten  underground,  was  passed.  It 
was  the  first  act  to  provide  for  government  inspect- 
ors. The  Fielding  ten-hour  bill  became  a  law  in 
1847.  By  the  extension  act  and  workshop  regula- 
tion act  of  1867,  the  ten-hour  day  was  made  to  apply 


34  INDUSTRIAL   ARBITRATION. 

to  other  industries  besides  the  manufacture  of  tex- 
tiles.    All  the  laws  were  consolidated  in  1878. 

In  the  midst  of  England's  industrial  revolution 
the  English  Parliament  passed  a  series  of  four  acts, 
in  1800,  1803,  1804  and  181 3  applying  to  England, 
Scotland  and  Ireland,  and  designed  to  regulate  the 
relations  between  master  and  workman.^  A  notable 
departure  from  the  earlier  forms  of  this  legislation 
was  made.  Substantially  the  acts  provided  for  the 
appointment  of  two  arbitrators,  one  by  the  employ- 
ers and  one  by  the  employees,  from  nominations 
made  by  the  local  justice  of  the  peace.  These  laws 
applied  only  to  the  cotton  trade.  Like  the  former 
acts  they  made  reference  of  disputes  compulsory  and 
decisions  binding. 

The  act  of  1824,  which  consolidated  the  three 
acts  then  in  force,  extended  the  operation  of  the 
principle  of  conciliation  and  arbitration,  as  defined 
by  law,  to  all  trades.  To  insure  the  maintenance 
of  the  freedom  of  contract  between  employer  and 
employee,  first  secured  by  the  repeal  of  the  Statute 
of  Apprentices  in  1814,  mutual  consent  of  master 
and  workmen  was  made  necessary  as  a  condition 
precedent  to  the  fixing  by  local  magistrates  of  rate 


'39-40  Geo.  Ill,  Ch.  90;  43  Geo.  Ill,  Ch.  151;  44  Geo.  Ill, 
Ch.  87;  53  Geo.  Ill,  Ch.  57. 


ENGLISH    EXPERIMENTS  35 

of  wages  or  price  of  labor  or  workmanship.  This 
clause  abolished  the  compulsory  features  of  earlier 
legislation  on  the  subject  and  is  noteworthy  only 
for  this  reason.  The  consolidation  act  of  1824  re- 
mained in  force  until  1896. 

The  repeal  of  the  Statute  of  Apprentices  was  de- 
manded by  the  employers  and  its  avowed  object 
was  to  cheapen  labor.  Every  effort  was  being  made 
to  intensify  the  hatefulness  of  laws  enacted  up  to 
1800  against  combinations  of  working  men. 

The  act  of  1824  was  amended  in  1837  to  provide 
for  compulsor}^  arbitration  between  employers  and 
workmen,  upon  the  application  of  either  party.  The 
local  magistrate  was  empowered  to  nominate  four 
or  six  arbitrators,  half  workmen  and  half  masters. 
In  the  event  of  the  arbitrators'  failure  to  agree,  it 
was  provided  that  the  case  should  be  referred  to  the 
appointing  magistrate. 

Subjects  for  arbitration  included  price  for  work 
done,  hours  of  labor,  injury  or  damage  to  work, 
delay  in  completing  work  or  bad  material.  The 
act  provided  that  in  emergencies,  the  justice  of  the 
peace  might  grant  a  summary  hearing.  Mutual  con- 
sent was  a  condition  precedent  to  the  fixing  of  fu- 
ture rates  of  wages  and  standards  of  workmanship. 


36  INDUSTRIAL    ARBITRATION 

The  awards  of  the  boards  could  be  enforced  by  dis- 
tress or  imprisonment.  This  act  was  intended 
mainly  for  the  textile  industries. 

The  council  of  conciliation  act,  drawn  from  the 
French  system,  was  passed  in  1867.  It  made  it  pos- 
sible for  any  number  of  employers  and  workmen 
to  agree  to  create  a  council  of  conciliation  and  ar- 
bitration and  receive  a  license  from  the  government 
with  all  the  powers  of  the  boards  under  the  act  of 
1824.  Fixing  wages  was  expressly  forbidden.  Dis- 
putes, before  reaching  the  council,  must  have  been 
referred  first  to  the  "committee  on  conciliation," 
consisting  of  one  master  and  one  workman.  Al- 
though this  act  remained  in  force  until  1896,  it  was 
never  more  than  a  dead  letter,  no  application  for 
license  ever  having  been  made  under  it. 

The  only  definite  answer  offered  in  explanation 
of  the  failure  of  this  act,  according  to  Leonard  W. 
Hatch,  in  referring  to  the  later  debates  in  Parlia- 
ment, is  that  the  act  was  too  inelastic,  laying  down 
too  many  hard  and  fast  rules  as  to  the  constitution 
and  procedure  of  the  councils,  so  that  no  latitude 
was  left  to  employers  and  workmen  who  might  de- 
sire to  form  them.  The  act  provided  for  little  more 
than  conciliation  committees  for  collective  disputes. 
But  this  feature  of  the  act  is  noteworthy  for  the 


ENGLISH    EXPERIMENTS  37 

reason  that  it  Is  the  first  instance  of  legal  recog- 
nition in  England  of  collective  disputes  and  con- 
sequently of  collective  bargaining  between  employer 
and  employee.  Councils  were  empowered  to  take 
cognizance  of  disputes  involving  one  or  more  work- 
men. 

In  1872  Parliament  passed  the  masters  and  work- 
men act.  It  provided  that  masters  and  workmen 
might  contract  as  to  terms  of  employment  and  bind 
both  parties  to  submit  their  disputes  to  arbitration. 
It,  however,  offered  no  inducement  to  the  parties 
to  enter  into  contracts  and  permitted  either  party 
to  withdraw  from  such  contracts,  after  a  brief  notice 
to  the  other  party.  Although  penalties  could  be 
provided  for  under  the  contracts,  no  provision  was 
made  to  enforce  them.  This  act  was  in  force  until 
1896,  but  no  practical  results  ever  came  of  it. 

Private  boards  of  conciliation  were  established  in 
England  as  early  as  1856,  and  private  voluntary 
boards  were  common  in  England  at  the  time  of  the 
passage  of  the  council  of  conciliation  act  in  1867. 

Trade  boards  of  conciliation  and  arbitration, 
made  up  of  an  equal  number  each  of  employers  and 
workmen  were  quite  successful  in  averting  trouble 
in  the  iron  and  steel  industry  in  England.  Joint 
committees  of  conciliation  and  arbitration  similar 


!G8132 


38  INDUSTRIAL    ARBITRATION 

to  the  trade  boards  but  with  less  machinery  and 
jurisdiction  in  particular  establishments  also  made 
notable  progress  toward  friendly  relations  between 
employer  and  employee.  District  boards  of  concil- 
iation and  arbitration  had  general  jurisdiction  over 
a  variety  of  employments. 

The  first  permanent  and  successful  board  of  con- 
ciliation was  organized  in  i860  In  the  hosiery  and 
glass  trade  at  Nottingham,  England,  by  A.  J.  Mun- 
della. 

Modern  conciliation  and  arbitration  In  England 
dates  from  the  dock  laborers'  strike  in  1889.  The 
movement  for  Industrial  peace  following  that  strike 
was  begun  by  Sir  Samuel  Boulton. 

Under  the  direction  of  the  London  Chamber  of 
Commerce,  two  panels  of  twelve  members  each  were 
selected,  one  from  the  Chamber  of  Commerce  and 
one  from  the  trade  unions.  Every  dispute  brought 
before  the  Chamber  of  Commerce  was  referred  to 
a  special  committee  of  one,  two  or  more  members 
from  each  panel.  The  third  person,  known  vari- 
ously as  referee,  umpire  or  chairman,  was  elim- 
inated in  this  plan.  The  operations  of  the  Chamber 
of  Commerce  were  confined,  of  course,  to  the  city 
of  London. 

An  act  of  Parliament  of  August  7,    1896,  pro- 


ENGLISH    EXPERIMENTS  39 

vided  for  the  registration  with  the  English  board 
of  trade,  corresponding  to  our  Department  of  Com- 
merce, of  all  boards  organized  for  the  purpose  "of 
settling  disputes  between  masters  and  workmen." 
Registration  was  optional,  but  as  long  as  a  board 
or  association  was  registered,  the  act  required  it  to 
"furnish  such  returns  of  its  proceedings,  and  other 
documents  as  the  board  of  trade  may  reasonably 
require."  The  government  board  of  trade  was  au- 
thorized to  adopt  rules  of  procedure  for  registered 
arbitration  and  conciliation  boards. 

By  this  act  the  government  board  of  trade  was 
authorized  to  inquire  into  anticipated  or  existing 
differences  between  employers  and  workmen ;  to 
take  steps  to  bring  the  parties  together  under  the 
presidency  of  a  chairman  mutually  agreed  upon  or 
nominated  by  the  board  of  trade,  with  a  view  to 
amicable  settlement;  on  application  of  employer  or 
workmen,  "after  taking  into  consideration  the  ex- 
istence and  adequacy  of  means  available  for  con- 
ciliation in  the  district  or  trade,"  to  appoint  a  "per- 
son or  persons  to  act  as  conciliator  or  as  a  board  of 
conciliators." 

In  the  event  of  settlement  by  conciliation  or  ar- 
bitration, the  terms  were  to  be  drawn  up  in  a  memo- 
randum and  a  copy  delivered  to  and  filed  by  the 


40  INDUSTRIAL    ARBITRATION 

board  of  trade.  The  board  of  trade  was  authorized 
to  encourage  the  formation  of  boards  of  conciliation 
in  districts  and  trades  not  already  provided. 

In  191 1,  following  the  railway  strike,  an  indus- 
trial council  was  created  at  the  instance  of  the  pres- 
ident of  the  board  of  trade.  This  council  was  es- 
tablished for  the  purpose  of  considering  and  of 
inquiring  into  matters  referred  to  It  affecting  trade 
disputes,  and  especially  of  taking  suitable  action  in 
regard  to  any  dispute  referred  to  it  affecting  the 
principal  trades  of  the  country,  or  likely  to  cause 
disagreements  involving  the  ancillary  trades,  or 
which  the  parties  before  or  after  breaking  out  of  a 
dispute  were  themselves  unable  to  settle. 

The  object  of  the  government  in  this  matter^  was 
to  encourage  and  foster  voluntary  methods  or  agree- 
ments, rather  than  to  Interfere  with  them.  The  in- 
dustrial council  has  no  compulsory  powers. 

At  the  initial  meeting  of  the  council  It  was  unan- 
imously agreed  that,  excepting  In  very  special  cases, 
which  would  be  considered  on  their  merits  in  each 
instance,  the  meetings  of  the  council  should  be  pri- 
vate and  confidential.  It  was  decided  that  matters 
should  be  treated  by  the  council  as  if  it  were  act- 


'  Ninth  Report  of  the  Board  of  Trade  of  Proceedings  under 
the  Conciliation  Act,  1896,  p.  114. 


ENGLISH    EXPERIMENTS  41 

ing  in  a  judicial  capacity  and  not  as  advocates. 
The  activity  of  the  board  is  indicated  somewhat 
from  a  letter  addressed  by  the  president  of  the 
board  of  trade  to  the  council  on  June  14,  1912, 
in  which  the  council  is  asked  to  determine  the  best 
method  of  securing  the  fulfilment  of  industrial 
agreements  and  how  far,  and  in  what  manner,  in- 
dustrial agreements  made  between  representative 
bodies  of  employers  and  of  workmen  should  be  en- 
forced throughout  a  particular  trade  or  district. 

The  industrial  council  consists  of  thirteen  repre- 
sentatives of  employers  and  a  corresponding  num- 
ber of  representatives  of  work  people  with  power 
to  add  to  their  number. 

The  board  of  trade  has  been  conspicuously  suc- 
cessful in  the  settlement  of  industrial  disputes.  In 
1905,  it  intervened  in  fourteen  disputes  and  settled 
all  of  them  ;  in  1906,  it  intervened  in  twenty  instances 
and  settled  sixteen;  in  1907,  there  was  a  settlement 
of  thirty-two  out  of  thirty-nine  interventions;  in 
1908,  the  board  was  equally  successful. 

Since  1908,  three  panels  of  fifteen  members  each 
have  been  nominated  by  the  president  of  the  board 
of  trade,  one  of  employers,  one  of  employees  and 
one  of  neither,  the  last  being  persons  of  eminence  and 
impartiality,  and  designated  for  chairmen.     Indus- 


42  INDUSTRIAL    ARBITRATION 

trial  courts,  so  called,  are  nominated  from  the  three 
panels  by  the  board  of  trade. 

In  1909,  six  disputes  involving  stoppage  of  work 
were  settled  by  conciliation  or  mediation  and  sev- 
enteen disputes  Involving  stoppage  of  work  were 
settled  by  arbitration  under  the  conciliation  act  of 
1896.  In  the  same  year  fifteen  disputes  Involving 
stoppage  of  work  were  settled  by  the  conciliation 
or  mediation  of  trade  boards,  and  six  disputes  were 
settled  by  arbitration  of  trade  boards.  Four  dis- 
putes Involving  stoppage  of  work  were  settled  by 
conciliation  of  district  boards,  trade  councils  and 
federations.  Ten  disputes  Involving  stoppage  of 
work  were  settled  by  conciliation  and  twenty-eight 
disputes  Involving  stoppage  of  work  were  settled  by 
arbitration  by  Individuals.  Six  hundred  ninety- 
eight  disputes  were  settled  by  conciliation  and  three 
hundred  twenty-seven  disputes  by  arbitration  of 
permanent  conciliation  and  arbitration  boards,  in- 
cluding district  and  general  boards,  in  1909. 

In  1 9 10  six  disputes  involving  stoppage  of  work 
were  settled  by  conciliation  and  nine  disputes  in- 
volving stoppage  of  work  were  settled  by  arbitration 
under  the  conciliation  act  of  1896.  Fourteen  dis- 
putes were  settled  by  particular  trade  boards,  two 
disputes  by  district  boards,  trade  councils  and  f  eder- 


ENGLISH    EXPERIMENTS  43 

ations  and  twenty-eight  disputes  by  individuals. 
Eight  cases  were  settled  before  the  Industrial  Courts 
created  in  1908.  In  the  same  year,  19 10,  one  thou- 
sand eighty-seven  disputes  were  settled  by  perma- 
nent conciliation  and  arbitration  boards,  including 
trade  and  district  boards.  In  19 10  there  were  two 
hundred  eighty-two  conciliation  boards  in  Great 
Britain,  of  which  two  hundred  sixty-five  were  for 
particular  trades  and  seventeen  were  district  or  gen- 
eral boards.  Ninety-six  trade  agreements,  In  which 
it  was  provided  that  failure  of  the  respective  boards 
of  conciliation  to  reach  an  agreement  should  be  fol- 
lowed by  a  request  of  the  board  of  trade  that  It 
appoint  an  arbitrator,  were  reported  in  force. 

In  191 2,  twenty-two  disputes  were  settled  under 
the  conciliation  act  of  1896,  thirteen  by  particular 
trade  boards,  twelve  by  district  and  general  boards 
and  trade  councils  and  fifty-two  by  voluntary  con- 
ciliation and  by  individuals.  In  the  same  year,  two 
thousand,  one  hundred  thirty-eight  disputes  were 
settled  by  permanent  conciliation  and  arbitration 
boards  and  standing  joint  committees.*  Seventy- 
three  disputes  were  dealt  with  by  the  board  of  trade 
or  Its  agents  under  the  act  of  1896  In  191 2,  this 


*  Between  1901  and  1910,  7,784  cases  out  of  16,561  considered 
by  these  boards  were  settled. 


44  INDUSTRIAL    ARBITRATION 

number  being  less  than  in  191 1,  when  nineiy-two 
cases  were  dealt  with,  but  higher  than  any  previous 
year  with  the  exception  of  191 1, 

These  seventy-three  cases  do  not  include  adjust- 
ments made  under  the  revised  railway  conciliation 
scheme  recommended  by  the  Royal  Commission  ap- 
pointed in  191 1,  as  amended  by  the  railway  con- 
ference agreement  of  December,  191 1.  This 
scheme  provided  for  the  establishment  on  each 
railway  of  a  suitable  number  of  conciliation  boards 
to  deal  with  questions  referred  to  them  relating  to 
the  rate  of  wages,  hours  of  labor  or  conditions  of 
service,  other  than  matters  of  management  of  dis- 
cipline, of  all  wage-earning  employees  engaged  in 
the  manipulation  of  traffic  and  in  the  permanent 
service  of  the  company.  For  each  railway  concilia- 
tion board  there  is  a  chairman,  the  same  chairman 
acting  for  all  the  conciliation  boards  on  a  company 
system.  The  chairman  is  to  be  selected  by  the  par- 
ties, or,  failing  agreement,  he  is  appointed  by  the 
board  of  trade.° 

The  table  at  the  bottom  of  page  45  shows  the 
proportion  of  work  people  and  employers  involved 
in  industrial  controversies  between  1903  and  191 2, 


'  Tenth  Report  of  Proceedings  under  the  Conciliation  Act  of 
1896,  p.  4. 


ENGLISH    EXPERIMENTS 


45 


and  In  whose  favor  the  disputes  were  decided.  The 
proportion  of  work  people  directly  Involved  in  dis- 
putes which  were  settled  In  favor  of  the  work  people 
between  1903  and  191 2  was  an  average  of  twenty- 
seven  and  one-half  per  cent.,  while  the  average  pro- 
portion of  work  people  directly  involved  In  disputes 
settled  in  favor  of  the  employers  during  the  same 
period  was  twenty-six  and  one-tenth  per  cent. 

After  1907  and  until  the  changes  of  191 1,  English 
railway  companies  and  employees  settled  their 
differences  by  arbitration  and  conciliation  under 
an  agreement  secured  by  the  board  of  trade  and 


TABLE  NO.  1 

SHOWING  PER  CENT.  OF  DISPUTES   SETTLED  IN  FAVOR  OF  EACH 
PARTY  AND  COMPROMISES,   1903-1912* 


Proportion  of  Work  People  Directly  I 

nvolved  in 

Disputes  Which  Were 

Year 

Settled  in 

Settled  in 

Compromised 

Indefinite 

Favor  ol 

Favor  of 

or  Partially 

or 

Workpeople 

Employers 

Successful 

Unsettled 

Per  cent. 

Percent. 

Per  cent. 

Percent. 

1903    

31.2 

48.1 

20.7 

0.0 

1904    

27.3 

41.7 

30.9 

0.1 

1905   

24.7 

34.0 

41.2 

0.1 

1906  

42.5 

24.5 

33.0 

0.0 

1907   

32.7 

27.3 

40.0 

0.0 

1908  

8.7 

25.7 

65.6 

0.0 

1909   

11.2 

22.3 

66.5 

0.0 

1910   

16.3 

13.8 

69.7 

0.2 

1911    

6.6 

74.5 

9.3 
14.3 

84.1 
11.1 

0.0 

1912   

0.1 

•  Report  on  Strikes  and  Lockouts  and  on  Conciliation  and  Arbitration 
Beards  in  the  United  Kingdom  in  J912,  p.  xix.  Introduction. 


46  INDUSTRIAL    ARBITRATION 

representatives  of  the  trade  unions.''  The  original 
signing  of  the  agreement  followed  a  threatened  rail- 
way strike.  Under  the  first  agreement,  there  was 
a  central  conciliation  board  for  a  whole  railway 
system  made  up  of  representatives  from  the  sectional 
boards,  but  these  central  boards  were  abolished  after 
the  inquiry  of  the  Royal  Commission  in  191 1.  One 
hundred  seventy-one  cases  out  of  two  hundred  sixty- 
five  handled  by  thirty  boards  were  settled  in  1909. 
Seventy-two  cases  out  of  ninety-seven  handled  by 
fourteen  boards  were  settled  in  1910.^ 

The  inquiry  of  the  Royal  Commission  of  191 1 
followed  a  threatened  strike,  the  men  having  been 
greatly  dissatisfied  with  the  results  of  the  original 
agreement  of  1907.  It  was  charged  that  the  ma- 
chinery of  the  agreement  had  been  used  against 
them  as  a  means  of  delay ;  that  this  machinery  was 
too  slow  and  cumbersome;  and  that  it  had  proved 
far  too  expensive  to  the  trade  unions. 

The  recommendations  of  the  Royal  Commission 
were  on  the  point  of  being  repudiated  by  the  em- 
ployees when,  through  the. intercession  of  the  House 
of  Commons,  the  agreement  of  1907  as  amended  by 
the  report  of  the  Royal   Commission  was  further 


'  Bulletin  of  the  Bureau  of  Labor,  No.  98,  Vol.  24,  p.  82. 
'  Ibid.,  p.  83. 


ENGLISH    EXPERIMENTS  47 

amended  in  joint  conference.  This  present  agree- 
ment requires  the  employers  to  receive  a  deputation 
of  men,  if  they  wish  to  send  one,  within  fourteen 
days  after  the  receipt  of  a  petition,  which  must  be 
signed  by  twenty-five  per  cent,  of  the  employees, 
unless  a  different  number  Is  agreed  upon  by  a  sec- 
tional conciliation  board.  Adverse  changes  in 
wages,  hours  or  conditions  are  not  effective  until 
endorsed  by  a  conciliation  board. 

Lately,  the  trade  unions  have  shown  hostility  to 
the  scheme  of  the  Royal  Commission  as  amended 
by  the  railway  conference  agreement,  because  only 
active  rallwaymen  may  become  members  of  the  con- 
ciliation boards.  The  trade  unions,  which  have  a 
membership  of  about  three  million,  demand  the 
admission  of  the  trade  union  officials  on  the  concil- 
iation boards  since,  as  they  contend,  the  active  mem- 
bers are  subjected  to  victimization  when  they  run 
counter  to  the  railway  companies.  Under  a  recent 
referendum,  124,415  of  the  260,000  members  of  the 
Rallwaymen's  Federation  voted  In  favor  of  the  total 
abolition  of  the  conciliation  boards. 

The  rise  In  prices,  estimated  at  six  per  cent,  from 
1900  to  1908,  coinciding  with  the  decline  of  wages, 
was  mainly  responsible  for  the  unrest  In  1910  and 
191 1,    when   numerous   strikes   occurred,    affecting 


48  INDUSTRIAL    ARBITRATION 

railroads,  shipyards,  factories  and  mines.  Other 
causes  were  increased  unemployment,  increased  pau- 
perism and  a  speeding-up  process  in  industry.  The 
English  working  man  pays  about  two  per  cent,  more 
than  the  French  workman  for  rent  and  about  twen- 
ty-three per  cent,  less  than  the  German  workman. 
But  his  food  and  fuel  cost  about  eighteen  per  cent, 
more  than  the  food  and  fuel  of  either  the  German 
or  French  workman.  Wages  of  French  workmen 
are,  however,  a  fourth  less  than  those  of  the  Eng- 
lish workmen  and  hours  per  week  are  seventeen  per 
cent,  greater.  Hourly  rates  of  wages  in  French  in- 
dustries are  hardly  two-thirds  of  the  English  rate 
for  the  same  industries. 

The  table  on  page  49  shows  the  principal  causes 
of  disputes  for  ten  years,  1903- 191 2,  and  the  num- 
ber of  work  people  directly  involved  in  the  disputes. 
With  two  exceptions,  1909  and  1910,  wages  were 
the  predominating  cause  of  the  disputes.  In  1909 
the  leading  cause  was  hours  of  labor  and  in  1910 
the  leading  cause  was  the  employment  of  particular 
persons  or  classes  of  persons.  Generally  speaking, 
trade  unionism  has  been  the  second  among  the  lead- 
ing causes  of  industrial  controversies.  In  191 1,  al- 
most as  many  people  were  involved  in  disputes  over 
trade  unionism  as  over  wages. 


ENGLISH    EXPERIMENTS 


49 


TABLE  NO.  2 

CAUSES  OF  DISPUTES* 


Principal  Cause 

Number  of  Work  People  Directly  Involved  in 
Disputes  Beginning  in 

1903 

1904 

1905 

1906 

1907 

Wages : 

For     increase,     for 
minimum      wage, 
against    decrease, 
etc 

49,557 
4,108 

7,822 

13,609 

17,602 

817 

32,783 
1,970 

6,081 

7,601 

7,925 

20 

Z%,7Z7 
3,145 

6,408 

5,546 
9,377 
4,440 

87,933 
7,086 

4,734 

6,536 

50,750 

833 

56,058 

Hours  of  labor : 
For  decrease,  etc.. . 

Employment    of    par- 
ticular    classes     or 
persons   

Working      arrange- 
ments, etc 

Trade  unionism 

Other  causes  

2,080 

13,699 

11,802 
16,439 

650 

Grand  total  

93,515 

56,380 

67,653 

157,872 

100,728 

Principal  Cause 

Number  of  Work  People  Directly  Involved  in 
Disputes  Beginning  in 

1908 

1909 

1910 

1911            1912 

Wages : 

For     increase,     for 
minimum     wage, 
against    decrease, 

etc 

Hours  of  labor : 

For  decrease,  etc. . . 
Employment    of    par- 
ticular    classes     or 

persons   

Working      arrange- 
ments, etc 

Trade  unionism 

Other  causes  

175,889 

8,377 

11,078 

12,467 

12,218 

3,940 

42,028 
87,367 

13,492 

8,892 
12,935 

5,544 

76,474 
91,927 

114,793 

62,207 

Z2,777 

6,907 

383,215 
13,161 

32,639 

68,009 

327.588 

6,492 

1,020,420 
8,961 

34,985 

42,068 
120,924 

5,658 

Grand  total  

223,969 

170,258 

385,085 

831,104 

1,233,016 

•  Report  on  Strikes  and  Lockouts  and  on  Conciliation  and  Arbitration 
Boards  in  the  United  Kingdom  in  19:2,  p.  xv,  Introduction. 


so  INDUSTRIAL    ARBITRATION 

With  the  return  of  Tom  Mann  from  Australia  in 
1910  and  the  visit  of  William  D.  Haywood  to  Eng- 
land, that  country  saw  industrial  unionism,  as  pro- 
claimed by  the  Industrial  Workers  of  the  World, 
get  a  foothold  there  for  the  first  time.  There  are 
some  points  of  similarity  between  the  old  Chartist 
movement  and  the  I.  W.  W.,  since  both  espouse 
direct  action. 

It  is  to  be  noted  that  191 1,  especially,  was  a 
year  of  severe  strikes  in  Great  Britain.  The  Welsh 
miners'  strike  which  had  begun  in  October,  1910, 
continued  through  the  greater  part  of  191 1.  It  in- 
volved twelve  thousand  five  hundred  men.  The 
Lancashire  cotton  weavers  and  spinners'  strike,  in- 
volving over  three  hundred  thousand  operatives, 
was  settled  through  the  intervention  of  Sir  George 
Askwith.  The  international  strike  of  the  seamen, 
involving  six  hundred  thousand  men,  eighteen  coun- 
tries and  three  hundred  harbors  in  Europe  and 
America,  was  disastrous  to  English  shipping.  The 
railway  strikes  in  England  and  Ireland  added  to  the 
industrial  disturbances. 

The  table  on  page  5 1  shows  the  number  of  indus- 
trial disputes  in  Great  Britain,  the  working  men 
involved  and  the  time  lost  for  each  year  from  1903 
to  191 2.     There  were  more  disputes  in  191 1  than 


ENGLISH    EXPERIMENTS 


51 


any  other  year  In  the  period,  a  slight  decrease  being 
shown  in  1912.  The  increased  number  of  working 
men  involved  in  1912  is  significant,  being  nearly 
five  times  the  number  involved  in  1908.     The  num- 


TABLE  NO.  3 

SHOWING    NUMBER    OF    DISPUTES,    WORKING    MEN    INVOLVED    AND 
TIME  LOST  THROUGH  INDUSTRIAL  DISPUTES* 


No.  of 

Disputes 

Beginning 

in  Each 

Year 

No.  of  Work  People  Involved  in  Dis- 
putes Beginning  in  Each  Year 

Aggregate 
Duration  in 

Working 
Days  of  All 
Disputes  in 
Progress  in 
Each  Year 

Directly 

Indirectly 

Total 

1903 

1904 

1905 

1906 

1907 

1908 

1909 

1910 

1911 

1912 

387 
355 

358 
486 
601 
399 
436 
531 
903 
857 

93.515 

56,380 

67,653 

157,872 

100.728 

223,969 

170,258 

385,085 

831,104 

1,233,016 

23,386 

30,828 

25,850 

59.901 

46,770 

71.538 

130,561 

130,080 

130,876 

230,265 

116,901 

87,208 

93,503 

217,773 

147,498 

295,507 

300,819 

515,165 

961.980 

1,463,281 

1,443,781 
1,316,686 
2,295,973 
2,570,950 
1,878,679 

10,632.638 
2.560,425 
9,545.531 
7,620.367 

38,142,101 

•  Report  on  Strikes  and  Lockouts  and  on  Conciliation  and  Arbitration 
Boards  in  the  United  Kingdom  in  igi2,  p.  ix,  Introduction. 


ber  of  working  days  lost  increased  alarmingly, 
amounting  to  the  work  of  more  than  one  hundred 
twenty-five  thousand  men  working  every  work  day 
in  the  year.  In  191 1,  nearly  one-half  of  the  total 
number  of  work  people  affected  by  strikes  and  lock- 
outs (448,618)  were  transport  workers,  the  next 
highest  in  number  (221,433)  being  textile  workers 


52  INDUSTRIAL    ARBITRATION 

and  140,808  having  been  employed  In  mining  and 
quarrying. 

While  Thorold  Rogers'  estimate  of  the  character 
of  English  working  men  seems  to  have  been  a  bit 
exaggerated  in  1884  when  his  book,  Work  and 
Wages,  was  published,  yet  the  estimate  in  the  main 
was  true  and  is  true  to-day. 

"The  remarkable  fact  in  the  history  and  senti- 
ments of  the  English  workman  is  that  he  is  neither 
socialist  nor  anarchist,"  said  Rogers.  "He  believes, 
and  rightly  believes,  that  in  the  distribution  of  the 
reward  of  labour  his  share  is  less  than  it  might  be, 
than  it  ought  to  be,  and  that  some  means  should  be 
discovered  by  which  the  unequal  balance  should  be 
rectified.  He  does  not  indeed  detect  the  process  by 
which  this  advantage  can  be  secured  to  him,  and 
relies,  though  doubtfully,  upon  certain  expedients 
by  which  he  thinks  he  can  extort  better  terms.  He 
has  good  reason  for  believing  that  he  can  gain  his 
ends,  in  some  degree  at  least,  by  association  with 
his  fellows;  for  he  can  not  have  forgotten  how 
angrily  any  action  of  his  in  this  direction  has  for 
centuries  been  resented  and  punished,  and  how  even 
now  it  is  assailed  by  sophistical  and  interested  crit- 
icism. But  he  has  never  dreamed  of  making  war 
on  capital  or  capitalist.  In  his  most  combative  tem- 
per he  has  simply  desired  to  come  to  terms  with 
capital,  and  to  gain  a  benefit  by  the  harmonious 
working  of  a  binding  treaty  between  himself  and 
his  employer.  He  is  wise  in  his  contention,  though 
not  always  wise  in  his  strategy." 


ENGLISH    EXPERIMENTS  53 

The  estimate  of  Doctor  Von  Schulze-Gajevernitz 
is  equally  interesting  and  somewhat  more  enlight- 
ening. It  supports  the  main  contention  of  Thorold 
Rogers  that  the  English  workman  is  not  to  be  car- 
ried away  by  gusts  of  passion,  however  great  his 
wrongs  may  be. 

"Amongst  the  English  working  classes,"  says 
Doctor  Von  Schulze-Gaevernitz,  "the  economic  in- 
vestigator never  meets  that  deep-seated  mistrust 
which  makes  the  German  workman  regard  every 
man  in  a  good  coat  as  an  enemy,  if  not  a  spy.  .  .  . 
The  goal  of  the  English  Labor  movement  is  still 
far  off,  its  struggles  are  often  hard  and  prolonged ; 
but  the  efforts  made  to  reach  that  goal  are  along 
thelinesof  the  existing  organization  of  society.  .  .  . 
Behind  the  growth  in  the  outer  forms  of  the  social 
life  lies  an  inner  movement,  which  supports  it  and 
gives  it  unity,  viz.,  the  vast  revolution  in  thought 
which  carried  men  from  an  individualistic  political 
economy  and  a  utilitarian  philosophy  to  an  organic 
view  of  society  and  of  the  place  and  duties  of  the 
individual." 

No  country  has  done  more  than  Great  Britain 
within  the  last  decade  to  relieve  the  distress  of  wage 
earners  and  to  lift  work  people  to  a  plane  of  greater 
economic  independence.  No  legislative  body  has 
met  critical,  social  and  industrial  problems  since 
1905  more  courageously  than  the  English  Parlia^ 


54  INDUSTRIAL    ARBITRATION 

ment.  In  fact,  Great  Britain  has  just  passed  through 
a  revolution  of  greater  consequences  to  her  work 
people,  of  more  direct  relation  to  their  personal 
welfare,  than  any  other  in  the  history  of  Anglo- 
Saxon  civilization.  The  fruit  of  this  revolution  is 
a  number  of  industrial  measures  for  which  the  Aus- 
tralian colonies  and  New  Zealand  furnished  the  in- 
spiration. It  is  a  historical  instance  going  to  show 
that  the  parent  may  gather  wisdom,  practical  wis- 
dom, at  the  feet  of  the  child.  The  beginning  of  this 
legislation  was  the  enactment  of  the  workmen's  com- 
pensation act  in  1897,  followed  by  the  unemployed 
workmen's  act  of  1905. 

In  1908,  Lloyd-George  carried  the  passage  of  his 
old  age  pension  act,  strongly  supported  by  organ- 
ized labor.  This  act  was  effective  January  i,  1909. 
Originally,  the  act  provided  pensions  for  per- 
sons seventy  years  of  age,  citizens  of  the  United 
Kingdom,  who  had  lived  in  the  country  at  least 
twenty  years  preceding  and  who  did  not  belong  to 
the  delinquent,  defective  or  criminal  classes  and  who 
were  not  public  dependents.  This  latter  disqualifi- 
cation was  removed  in  191 1  so  that  persons  receiv- 
ing poor  relief  were  transferred  to  the  old  age  pen- 
sion fund.  The  largest  pension  provided  under  the 
act  is  five  shillings  a  week  to  all  persons  who  have 


ENGLISH    EXPERIMENTS  55 

an  income  of  not  more  than  twenty-one  pounds  a 
year.  Graduated  pensions  are  paid  to  persons  hav- 
ing larger  incomes.  In  19 12,  there  were  one  mil- 
lion pensioners  and  the  annual  cost  to  the  govern- 
ment of  maintaining  the  system  was  sixty  million 
dollars. 

Unemployment  caused  great  distress  during  1908, 
the  number  out  of  work  being  variously  estimated 
at  from  one  million  to  two  and  one-quarter  millions. 
The  government  extended  whatever  relief  it  could 
under  the  act  of  1905  but  a  report  made  late  in 
1909  showed  that  work  done  under  the  public  relief 
act  would  have  cost  thirty  per  cent,  less  if  done  by 
ordinary  labor.  This  report  urged  the  creation  of 
labor  exchanges,  which  suggestions  were  carried 
out  in  1 9 10,  when  eighty-two  labor  exchanges  were 
opened  in  Great  Britain.  Work  was  found  for 
three  hundred  twenty-five  thousand  persons  during 
the  first  nine  months  of  191 1.  In  191 2,  the  number 
of  exchanges  had  grown  to  two  hundred  fifty. 

In  the  government  insurance  scheme  instituted  in 
191 1  and  eflfective  July  1st,  1912,  provision  was 
made  for  insurance  against  sickness,  unemployment 
for  nearly  two  and  one-half  million  men  in  the 
building  and  engineering  trades,  and  maternity 
grants  to  women.    Unemployment  Insurance  is  ad- 


56  INDUSTRIAL    ARBITRATION 

ministered  by  the  board  of  trade,  the  employer  and 
employee  contributing  practically  equal  amounts  to 
the  fund  and  the  government  contributing  one-third 
of  this  amount. 

All  wage  earners  whose  annual  earnings  are  less 
than  eight  hundred  dollars  a  year  and  who  are  un- 
der sixty-five  years  of  age,  except  soldiers  and  sail- 
ors otherwise  provided  for,  pensioners,  government 
employees,  persons  working  on  their  own  account, 
wives  working  for  their  husbands  and  casual  domes- 
tics and  workers,  are  entitled  to  share  in  the  sick 
insurance  provided  by  the  act  of  191 1.  Fourteen 
out  of  the  nineteen  million  wage-earning  population 
are  insured  under  the  act.  The  government  con- 
tributes to  a  fund  assessed  against  both  employers 
and  employees. 

Great  Britain  passed  the  first  minimum  wage  act 
in  1909.  It  provided  for  trade  boards  after  the 
plan  of  Australian  legislation  and  applied  to  the 
tailoring,  lace-making,  box  and  chain-making  in- 
dustries. The  board  of  trade  was  authorized  to 
select  a  chairman  and  secretary  and  to  appoint  not 
more  than  one-half  of  the  members  of  each  special 
trade  board.  If  women  were  employed,  it  was  nec- 
essary to  include  a  woman  on  the  trade  board.  The 
specific  duty  of  these  wage  boards  was  to  fix  a  wage 


ENGLISH    EXPERIMENTS  57 

for  time  and  piece  work  in  each  industry.  The 
English  coal  strike  of  19 12  resulted  in  the  passage 
of  a  minimum  wage  law  applying  to  coal  miners. 
The  act  provided  for  district  boards  to  determine 
rates  of  wages  in  different  parts  of  the  country. 
Immediately  after  the  passage  of  this  act  the  strik- 
ing miners  returned  to  work. 

It  is  safe  to  say  that  if  this  body  of  legislation 
will,  as  may  be  expected  when  its  benefits  are  fully 
developed,  contribute  materially  to  the  avoidance  of 
strikes  and  lockouts  in  Great  Britain,  the  example  is 
bound  to  have  its  effect  in  the  United  States,  where 
temporizing  processes  are  the  prevailing  order  of 
statesmanship  and  where  an  institution  may  be  suc- 
cessfully assailed  by  calling  it  "Socialistic." 


CHAPTER  III 

GERMAN   SOCIAL  JUSTICE 

BEFORE  the  passage  of  the  act  of  July  29, 
1890,  regulating  the  industrial  courts,  indus- 
trial conciliation  and  arbitration  in  Germany  was 
confined  almost  altogether  to  the  settlement  of  in- 
dividual disputes. 

The  industrial  courts,  originally,  were  similar  to 
the  French  Coitseils  des  Prud'honimes,  and  de- 
signed only  for  individual  disputes.  They  were  es- 
tablished in  the  Rhine  province,  formerly  under 
control  of  France,  in  the  early  part  of  the  nineteenth 
century.  Three  German  states,  Prussia,  Saxony  and 
Saxe-Weimar,  had  such  tribunals  prior  to  the  enact- 
ment of  the  industrial  code  of  1869.  That  code 
empowered  local  authorities  to  create  tribunals  for 
the  settlement  of  disputes  between  employers  and 
•the  working  people.  Equal  representation  of  em- 
ployers and  employees  was  required  by  the  code. 
Not  until  1890  was  industrial  conciliation  and  arbi- 
tration placed  upon  an  imperial  basis. 

58 


GERMAN    SOCIAL    JUSTICE  59 

Industrial  Germany  presents  such  diversified  eco- 
nomic and  political  phenomena  as  to  make  a  brief 
and,  at  the  same  time,  accurate  analysis  of  indus- 
trial conditions  there  next  to  impossible.  This  is  true 
because  of  the  questionable  unity  of  spirit  in  social 
and  political  thought.  Yet,  no  study  of  conciliation 
and  arbitration  in  Germany  would  be  complete 
without  considerable  attention  to  the  paternalistic 
character  of  the  German  state  and  an  accurate 
understanding  of  laws  designed  to  protect  the  work- 
man against  such  unforeseen  misfortunes  as  unem- 
ployment, pauperism  and  disease. 

Germany,  as  a  whole,  is  notoriously  undemo- 
cratic, but  almost  every  shade  of  political  opinion 
may  be  found.  In  certain  sections  of  the  country 
political  thought  barkens  back  to  medievalism,  when 
the  feudal  state  was  all-powerful.  On  the  other 
hand,  there  is  the  influence  of  the  Social-Democrats, 
a  growing  factor  of  radicalism  and  a  source  of  dis- 
turbance to  the  ultraconservative  industrialism. 

The  present  German  Empire  dates  from  the  close 
of  the  Franco-Prussian  War,  1871,  and  it  is  with 
the  political  and  industrial  tendencies,  beginning 
with  the  present  empire,  largely,  that  this  chapter 
has  to  deal, 

German  conservatives  still  cling  tenaciously  to  the 


6o  INDUSTRIAL    ARBITRATION 

individualistic  view  of  property.  They  are  very 
much  afraid  of  popular  government  and  resist  its 
encroachments  with  every  means  in  their  power.  In 
1909  they  forced  the  resignation  of  Billow  because 
he  had  espoused  a  small  inheritance  tax.  They  ob- 
jected, not  so  much  to  the  tax,  as  to  establishing  a 
precedent  by  which  the  popularly-chosen  Reichstag 
would  acquire  control  over  property  rights.  Rev- 
enue for  running  the  government,  however,  is  de- 
rived largely  from  a  graduated  income  tax.  The 
rate  is  very  low  on  small  incomes  and  in  Prussia 
there  is  an  exemption  of  two  hundred  fourteen  dol- 
lars. Some  three  hundred  German  cities  have  in- 
stituted an  "unearned-increment"  tax  on  land,  a  tax 
based  on  the  theory  that  the  state  is  entitled  to  a 
share  of  new  value  added  to  land  from  increase  in 
population. 

Urban  population  in  Germany  has  far  outstripped 
in  growth  the  population  of  the  country  districts. 
When  the  empire  was  established  in  1871,  the  city 
population  was  only  twenty-three  and  seven-tenths 
per  cent,  of  the  whole,  whereas  it  had  grown  in 
1900  to  forty-two  and  twenty-six-hundredths  per 
cent.  This  shifting  of  the  population  has  had.  a  de- 
plorable effect  on  the  working  people.  It  has  in- 
creased land   values  enormously  in  the  industrial 


GERMAN    SOCIAL    JUSTICE  6i 

centers,  greatly  augmented  rents  and  made  increas- 
ingly difficult  the  problem  of  housing  for  the  poorer 
people.  The  English  Board  of  Trade  in  an  inquiry 
made  in  1909  found  that  if  English  rents  are  rep- 
resented by  one  hundred  per  cent.,  German  rents 
are  one  hundred  twenty-three  per  cent,  and  French 
rents  ninety-eight  per  cent.  Of  late  years  the 
strictly  industrial  provinces  have  gained  notably  at 
the  expense  of  those  strictly  agricultural,  a  condition 
however  not  peculiar  to  Germany.  The  growth  in 
population  of  the  German  cities  illustrates  the  move- 
ment of  the  German  people.  In  1871,  eight  cities 
in  Germany  had  a  population  of  over  one  hundred 
thousand.  In  1905,  there  were  forty-one  cities  in 
this  class.  Eleven  of  these  forty-one  had  a  popula- 
tion of  two  hundred  fifty  thousand  or  more,  and  five 
a  population  of  more  than  a  half  million. 

In  1908,  there  were  about  four  and  one-half  mil- 
lion male  work  people,  including  adults,  juveniles 
and  children,  and  somewhat  more  than  a  million 
female  work  people,  a  total  of  five  and  one-half 
million.  Of  the  total  number  engaged  in  industry, 
over  nine  hundred  thousand  were  employed  in  min- 
ing, smelting  and  salt  works,  over  five  hundred 
thousand  in  metal  working  and  nearly  eight  hun- 
dred thousand  in  machine  industries.     The  textile 


62  INDUSTRIAL    ARBITRATION 

workers  numbered  about  eight  hundred  thirty  thou- 
sand. Thus,  over  three  million  work  people  or 
about  three-fifths  of  the  total  are  engaged  in  indus- 
tries which,  in  the  United  States,  are  the  source  of 
most  of  our  industrial  disturbances — the  origin  of 
a  majority  of  our  strikes  and  lockouts.  All  of  these 
industries  have  increased  their  production  by  leaps 
and  bounds  since  the  present  empire  was  established. 

Industrial  development  since  i860  is  revealed  in 
the  volume  of  trade  for  two  years,  i860  and  1907. 
In  the  former  year  the  imports  and  exports 
amounted  to  about  seven  hundred  million  dollars, 
and  in  the  latter  year  to  more  than  six  times  that 
amount.  Imports  of  raw  material  for  manufactur- 
ing purposes  almost  doubled  during  the  ten-year  pe- 
riod from  1895  to  1905.  Each  year  the  volume  of 
manufactured  goods  imported  is  decreasing  and  the 
volume  of  manufactured  goods  exported  is  increas- 
ing. 

In  industry,  Germany  has  been  regarded  as  an 
imitator  of  England,  from  whom  she  received  much 
of  her  earliest  machinery  and  methods.  But  as  W. 
H.  Dawson  says,^  "While  the  average  Englishman 
has  been  accustomed  to  regard  commerce  as  a  purely 
rule-of-thumb  matter,  the  German  has  followed  it 


*  The  Evolution  of  Modern  Germany,  p.  79. 


GERMAN    SOCIAL   JUSTICE  63 

as  a  science  and  an  art,  and  in  reality  all  the  meth- 
ods and  measures  which  he  has  adopted  in  compet- 
ing with  his  older  rivals  for  the  trade  of  the  world 
may  be  reduced  to  one  principle,  characteristic  of 
the  Germans  in  so  many  ways,  the  application  of 
a  trained  intelligence  to  the  practical  affairs  of  life." 
Much  of  her  Industrial  progress,  Germany  owes 
to  a  splendid  and  elaborate  system  of  training 
schools  for  her  own  workmen — a  system  supple- 
mentary to  trade  apprenticeship,  which  has  never 
been  abandoned,  but  for  which  shop  work  in  the 
trade  schools  may  now  be  substituted.  Continuation 
schools  have  influenced  German  workmanship  since 
the  sixteenth  century  but  in  the  early  nineties  these 
schools  were  made  compulsory  for  boys  under  eight- 
een, not  students  elsewhere.  Only  a  few  cities  have 
not  adopted  the  comjoulsory  school  system  and  it 
has  become  popular  with  all  classes  of  people.  Some 
continuation  schools  are  maintained  jointly  by  large 
manufacturing  establishments,  unions,  the  state  and 
the  city.  Certain  voluntary  continuation  schools  re- 
quire the  payment  of  a  small  fee.  Daytime,  Sunday 
and  evening  classes  are  conducted  in  these  schools. 
Workshop  schools  are  maintained  privately  and  by 
the  state  for  about  two  hundred  fifty  trades.  Also 
certain  cities  maintain  training  schools  for  teachers. 


64  INDUSTRIAL    ARBITRATION 

Girls,  as  a  rule,  are  not  required  to  attend  compul- 
sory continuation  schools.  In  the  grade  schools, 
girls  are  taught  cooking,  sewing,  marketing,  etc. 

Education  in  the  grade  schools  is  compulsory  for 
both  sexes  from  six  to  fourteen.  School  children 
are  under  the  constant  care  of  a  school  physician 
and  a  carefully  planned  course  of  out  and  indoor 
exercise  is  given.  Books  and  breakfast  are  fur- 
nished by  the  school.  The  school  system  of  Ger- 
many Is  not  an  expensive  institution  when  compared 
with  the  educational  systems  of  other  countries. 
This  is  due  in  part  to  the  abnormally  low  salaries 
paid  teachers.  These  salaries  vary  from  eight  hun- 
dred dollars  to  one  thousand  five  hundred  dollars 
paid  annually  in  the  technical  schools  to  teachers 
with  university  training  and  long  experience.  All  in 
all,  the  German  school  system  is  a  wonderful  institu- 
tion and  to  it,  more  than  anything  else,  is  due  the 
rapid  industrial  advance  of  the  country  since  1871. 

Government  is  a  personal  matter  in  Germany  and 
the  state  shows  particular  concern  for  the  welfare 
of  the  worker,  whose  hand  and  mind  are  trained 
by  the  state  for  specific  vocations  and  who  is  pro- 
tected by  the  state  against  accidents,  sickness,  old 
age  and  unemployment.  University  officials  and 
college  professors  are  devoting  their  lives  to  the 


GERMAN    SOCIAL    JUSTICE  65 

problems  which  arise  in  connection  with  the  work- 
ing man's  welfare  and  happiness.  The  problems  of 
unemployment,  poverty  and  housing  are  attacked 
with  the  same  weapons  which  the  engineer  uses  in 
building  railroads,  the  industrial  magnate  uses  in 
increasing  the  output  of  his  factory  or  his  foreign 
market  or  the  professional  man  employs  in  an  anal- 
ysis of  the  intricate  problems  with  which  he  is  daily 
confronted. 

Municipal  labor  registries  find  work  for  nearly 
a  million  men  and  women  every  year.  Some  of 
these  registries  are  maintained  by  the  public  and 
others  by  private  agencies.  Some  are  provided  with 
buffets  where  food  and  beer  are  inexpensive  and 
where  cobblers  and  tailors  perform  their  services 
for  inconsiderable  pay.  Shower  baths,  a  free  dis- 
pensary and  medical  inspection  are  furnished.  The 
wandering  worker  is  looked  after  with  unequaled 
interest  and  lodging-houses  exist  by  the  hundreds 
where  a  bed  may  be  had  for  a  trifle,  or  for  work. 
Wandering  workers  are  not  looked  upon  as  vagrants 
in  Germany  and  as  a  consequence  vagrancy  has 
practically  disappeared.  This  may  seem  strange  to 
Americans  who  remember,  during  the  winter  of 
191 3,  that  thousands  of  men  and  women  appealed 
to  city  officials  all  over  the  country,  not  for  charity, 


66  INDUSTRIAL    ARBITRATION 

but  for  work,  and  were  denied  work  because  none 
was  to  be  had.  During  the  winter  of  1914,  however, 
several  municipalities  did  attempt  to  provide  public 
work  for  a  comparatively  small  per  cent,  of  the  un- 
employed. 

Germany  has  elaborate  schemes  of  social  insur- 
ance against  sickness,  accident  and  old  age.  Sick 
insurance  is  provided  for  those  working  in  factories 
and  mines,  workshops,  quarries,  transportation  in- 
dustries and  public  enterprises.  Free  medical  at- 
tention is  included  in  the  insurance  benefits.  Both 
the  employer  and  the  worker  contribute  to  the  in- 
surance fund.  Accident  insurance  is  another  feature 
of  German  industrialism,  and  must  be  provided  by 
the  employer.  The  system  is  administered  some- 
what after  the  plan  of  sick  insurance.  Old  age  in- 
surance is  available  to  certain  workers  whose 
earnings  are  five  hundred  dollars  a  year  or  less. 
Employers  and  employees  contribute  equally  to  the 
fund  and  to  this  the  state  also  adds.  In  1903,  eight- 
een million  were  insured  against  accident  and  more 
than  thirteen  million  persons  against  old  age.  In 
that  year,  the  total  expenditures  from  the  various 
funds  amounted  to  $100,000,000  and  the  accumu- 
lated reserve  to  $350,000,000.  In  1909,  the  total 
revenues  from  the  three  systems  amounted  to  $210,- 


GERMAN    SOCIAL    JUSTICE  67 

000,000,  of  which  $165,000,000  was  paid  out  in 
pensions  and  indemnities.  The  invested  funds  in 
1908  amounted  to  $496,000,000.  It  is  estimated  that 
the  contributions  amount  to  six  and  seventy-five- 
hundredths  per  cent,  of  the  wages  received  by  the 
insured,  of  which  the  employers  pay  three  and  sixty- 
eight-hundredths  and  the  employees  three  and 
seven-hundredths  per  cent. 

The  predictions  made  when  the  industrial  insur- 
ance laws  were  first  enacted  that  they  would  em- 
barrass and  retard  industrial  development  have  not 
been  realized.  On  the  contrary,  the  period  from 
1884,  when  the  sick  insurance  law  first  was  passed, 
to  the  present  time,  by  all  odds  marks  the  high  tide 
of  industrial  development  in  Germany. 

In  1907,  there  were  nearly  three  thousand  munic- 
ipal and  provincial  savings  banks  with  six  thousand 
six  hundred  branches  and  deposits  amounting  to 
more  than  three  billion  dollars.  Twenty-eight  out 
of  every  one  hundred  of  the  population  held  an  ac- 
count in  one  of  the  savings  banks. 

But  Germany's  paternalistic  care  of  its  citizens 
does  not  stop  with  industrial  insurance.  The  rail-r 
roads  are  almost  wholly  a  state  institution.  The 
Prussian  system  is  the  largest  employer  of  labor 
in  the  world  and  the  efl^ciency  of  its  management 


68  INDUSTRIAL    ARBITRATION 

is  universally  recognized.  It  has  performed  splen- 
did service  and  is  altogether  popular. 

Prussia  is  a  large  owner,  also,  of  coal,  potash, 
iron  and  salt  mines.  Ten  million  tons  of  coal  are 
taken  from  the  state  mines  every  year.  Forest  and 
farming  lands  of  nearly  a  million  acres,  formerly 
owned  by  the  Crown,  now  furnish  a  considerable 
revenue  to  the  state.  The  post-office  had  an  ad- 
mirable parcel-post  system  long  before  the  parcel 
post  was  attempted  in  this  country.  Packages 
weighing  from  eleven  to  one  hundred  twelve  pounds 
are  carried  at  a  very  low  cost.  Telegraphs  and 
telephones  are  monopolized  by  the  post-office  de- 
partment and  the  rate  per  message  is  not  quite  half 
the  charge  in  this  country.  Postal  savings  banks 
are  operated  in  connection  with  the  post-offices. 

German  manufacturers  have  a  marked  advantage 
In  a  less  pretentious  standard  of  living  among  all 
classes  and  consequently  lower  wages.  There  is  a 
spirit  of  frugality  which  pervades  all  classes  of  so- 
ciety, unknown  either  In  England  or  America.  The 
element  of  price  has  given  the  German  exporter  an 
important  advantage  in  world  markets. 

A  species  of  social  welfare  is  carried  on  by  the 
larger  German  employers.     The  same  hard  condi- 


GERMAN    SOCIAL   JUSTICE  69 

tions  attach  as  in  this  country — a  spirit  of  philan- 
thropy and  condescension  on  the  part  of  the  em- 
ployer and  a  necessarily  patronizing  and  dependent 
spirit  on  the  part  of  the  employees.  Social  welfare 
work,  as  conducted  in  Germany  as  well  as  every- 
where else,  is  not  really  popular  with  the  working 
class  because  the  workers  must  sacrifice  their  most 
cherished  possession — self-respect — to  benefit  by  it. 
Factory  dwellings  are  one  form  of  privately-main- 
tained social  welfare  in  Germany,  but  the  worker 
is  reluctant  to  accept  them  either  as  works  of  benev- 
olence or  disinterest  because  the  selfish  purpose  of 
the  employer  to  hold  his  men  has  been  proved  too 
often.  Profit  sharing  has  not  gained  much  headway 
in  Germany. 

Notwithstanding  everything  the  German  state  has 
done  for  Its  workers,  the  worker  Is  still  regarded 
as  an  underling.  The  paternalistic  attitude  of  the 
government  Is  not  inspired  by  any  spirit  of  democ- 
racy. Germany  will  not  be  able  to  throw  off  the 
shackle  of  industrial  bondage  until  a  fuller  meas- 
ure of  political  equality  is  obtained.  No  better  ex- 
amples of  political  inequality  are  to  be  found  among 
Teutonic  people  than  the  class  system  of  Prussian 
elections   and  the  Prussian   anti-coalition   laws,   or 


70  INDUSTRIAL    ARBITRATION 

any  better  evidence  of  thirteenth  century  political 
thought  than  the  origin  of  the  Prussian  constitution, 
which  was  handed  down  by  the  Crown. 

The  great  industrial  leaders  of  Germany  entertain 
practically  the  same  ideas  about  labor  organizations 
and  the  same  attitude  toward  trade  unions  as  great 
captains  of  industry  in  this  country.  Many  of  them, 
willing  to  bestow  all  kinds  of  contrivances  for  the 
welfare  of  their  employees,  are  equally  unwilling 
to  deal  with  their  employees  through  committees  as 
to  hours,  wages  and  working  conditions.  It  is  the 
independence  of  the  worker — his  right  to  barter  col- 
lectively, his  right  to  act  in  society  as  an  independ- 
ent economic  unit — which  the  industrial  potentate 
of  Germany,  as  well  as  of  this  country,  most  ve- 
hemently denies  and  vigorously  resists.  One  great 
German  industrialist,  head  of  the  coal  and  steel  syn- 
dicates, asserted  on  one  occasion  that  he  would  "re- 
fuse to  negotiate  with  any  organization  whatever" 
and  that  he  regretted  that  the  state  "interferes  at  all 
in  labor  relationships." 

Employees  of  the  state  railroads  are  not  permitted 
to  organize  labor  unions  and  are  wholly  at  the  mercy 
of  the  state  officialdom.  The  sharp  outlines  which 
separate  the  classes  socially  together  with  the  bu- 
reaucratic character  of  the  government  operate  as  a 


German  social  justice        71 

depressing  element  upon  the  rank  and  file  of  state 
employees. 

Trade  unionism  In  Germany  is  on  the  increase. 
The  greatest  growth  has  been  in  the  Socialist  unions, 
which  had  over  one  and  three-quarters  million 
members  in  1906.  Other  unions  had  a  membership 
of  five  hundred  twelve  thousand  that  year,  bringing 
the  total  up  to  2,215,154. 

While  the  German  industrialists  have  persisted  in 
their  obstinate  opposition  to  trade  unionism,  they 
nevertheless  have  left  nothing  undone  to  bind  them- 
seltes  together  in  great  and  powerful  unions  with 
enormous  resources  at  their  command.  They  take 
the  position  that  "modern  economic  development 
has  brought  to  the  front  the  estate  of  the  industrial- 
ists, who  have  superseded  the  old  feudal  land  pro- 
prietors as  employers,"  and  in  a  slightly  different 
form  they  seek  to  maintain  the  feudal  relationship 
between  the  master  and  the  servant.  They  make 
free  use  of  the  blacklist  and  the  lockout.  Between 
1899  and  1906,  the  number  of  lockouts  annually 
in  Germany  rose  steadily  from  twenty-eight  to  three 
hundred  five. 

Hours  of  labor  in  Germany  are  longer  than  in 
the  United  States.  A  very  few  industries  have  the 
eight-hour  day,  but  ten  hours  is  the  rule  and  in  some 
industries  it  is  much  more  than  that.     Twelve  hours 


72  INDUSTRIAL    ARBITRATION 

a  day  was  the  rule  as  far  back  as  1869,  when  the 
modern  movement  for  reduced  hours  began.  In 
1877,  the  Socialists  Inaugurated  their  demand  for 
a  ten-hour  day.  In  1891  they  demanded  nine  hours 
and  In  1896  their  present  eight-hour  day  program 
was  proclaimed.  In  1908,  an  amendment  to  the 
industrial  code  fixed  the  hours  for  female  workers 
at  sixty  a  week  but  this  rule  Is  subject  to  many  ex- 
ceptions. An  investigation  made  in  1 902  showed 
that  eleven  per  cent,  of  the  female  factory  operatives 
■worked  nine  hours  or  less  and  that  forty-three  per 
cent,  worked  from  nine  to  ten  hours,  Sunday  rest 
is  still  far  from  universal. 

Advantages  which  German  manufacturers  have 
enjoyed  In  respect  to  wages  and  hours  are  passing. 
The  cost  of  living  Is  rising  and  the  strength  of  trade 
unionism  Is  growing.  As  the  strength  of  trade  un- 
ionism is  augmented,  Its  power  to  compel  wage  in- 
creases will  also  grow  and  cost  of  production  in 
manufacturing  will  likewise  expand.  Present  rela- 
tions between  Labor  and  Capital  are  extremely  bit- 
ter. Both  sides  are  fortified  for  a  heroic  struggle 
and  the  fight  promises  to  be  long  and  wasting  on 
the  contestants. 

The  Industrial  code  declares  that  "all  prohibitions 


GERMAN    SOCIAL    JUSTICE  Ji 

and  penal  regulations  against  industrial  employers, 
industrial  assistants,  journeymen  and  factory  oper- 
atives regarding  agreements  and  combinations  for 
the  purpose  of  obtaining  more  favorable  conditions 
of  wages  and  of  work,  particularly  by  means  of  the 
suspension  of  work  or  the  dismissal  of  work  people, 
are  repealed,"  but  it  does  not  apply  to  state  employ- 
ees, agricultural  laborers  or  domestic  servants. 
Otherwise  it  constitutes  a  legalizing  act  for  strikes, 
but  interpretations  of  the  courts  have  been  quite 
unfavorable  to  strikers  in  several  instances. 

An  act  of  1890,  regulating  industrial  courts,  was 
the  first  legislation  recognizing  the  principle  of  col- 
lective disputes  and  providing  for  collective  bar- 
gaining. 

These  courts  were  empowered  to  act  as  concilia- 
tion bureaus  in  disputes  concerning  the  "terms  of 
continuation  or  renewal  of  the  labor  contract,"  but 
only  on  condition  that  both  parties  requested  action, 
and,  if  they  numbered  more  than  three,  appointed 
delegates  to  the  hearing.  Conciliation  bureaus  con- 
sisted of  the  president  of  the  court  and  at  least 
four  members,  two  employees  and  two  workmen,  but 
there  might  be  added,  and  it  was  compulsory  when 
the  delegates  so  requested,  representatives  in  equal 


74  INDUSTRIAL    ARBITRATION 

number  of  employers  and  employees.  Representa- 
tives and  members  of  the  bureau  could  not  act  If 
concerned  in  the  dispute. 

The  bureau  could  hear  and  examine  witnesses 
under  the  act  but  could  not  compel  their  attendance. 
After  hearing,  each  side  was  required  to  formulate 
its  opinions  of  the  allegations  of  the  other  side,- 
whereupon  an  effort  at  conciliation  was  to  be  made. 
Failing  in  this,  a  decision  followed  and  the  dele- 
gates were  required  to  declare  within  a  specified 
time  their  acceptance  or  rejection  of  the  award.  At 
the  expiration  of  this  time  the  decision  was  pub- 
lished. In  some  cases,  the  president  of  these  courts 
intervened  informally  with  conspicuous  success,  but 
in  three  years,  1899,  1900  and  1901,  there  were 
nearly  four  thousand  strikes,  one  hundred  thirty- 
two  only  having  been  settled  by  the  industrial 
courts. 

The  German  law  of  1890  was  quite  successful  in 
the  settlement  of  individual  disputes  but  not  suc- 
cessful in  the  settlement  of  collective  disputes.  The 
act  of  1901  took  the  appointment  of  arbitrators  out 
of  the  hands  of  the  president  and  lodged  it  with 
the  parties  concerned  in  a  controversy.  Not  only 
regular  assessors  of  the  court  may  be  chosen  but 
any  other  persons  in  whom  the  parties  have  confi- 


GERMAN    SOCIAL    JUSTICE  75 

dence.  The  new  act  made  the  appearance  of  par- 
ties to  a  dispute  compulsory  in  the  event  one  or 
both  parties  call  upon  the  court  to  act  as  a  board 
of  arbitration. 

When  both  parties  ask  for  arbitration,  the  court 
is  constituted  as  a  formal  board  of  arbitration.  If 
only  one  side  applies,  it  is  the  president's  duty  to 
attempt  to  obtain  the  cooperation  of  the  other  party. 
If  successful,  the  board  is  constituted  for  the  pur- 
pose of  conciliation.  If  neither  party  applies  for 
arbitration,  it  is  the  president's  duty  to  urge  the 
arbitration  of  the  controversy.  This  provision  per- 
mits the  court  to  intervene  with  a  view  to  settling 
threatened  strikes  and  lockouts.  There  is  nothing 
novel  in  the  proceedings  before  an  industrial  court 
sitting  as  a  board  of  arbitration.  Failure  to  appear 
before  the  court  in  answer  to  a  summons  of  the  pres- 
ident is  punishable  by  a  fine.  Decisions  are  given  by 
a  majority  but  the  president  may  abstain  from  voting 
if  there  is  a  tie.  The  acceptance  of  the  decision  is 
not  compulsory  and  a  failure  to  declare  whether  the 
decision  is  accepted  is  construed  as  a  refusal.  An 
award  is  binding,  however,  if  both  parties  have  pre- 
viously agreed  to  such  an  award. 

The  Berlin  court,  between  1902  and  1908,  was 
appealed  to  by  both  sides  in  one  hundred  sixty-four 


^6  INDUSTRIAL    ARBITRATION 

cases  and  by  one  side  in  sixty  instances.  Most  of 
the  applications  from  one  side  are  from  the  work- 
ers. Out  of  one  hundred  forty  applications  for  ar- 
bitration in  the  empire  in  1908,  one  hundred  thirty- 
four  were  from  workmen  while  only  six  came  from 
the  employers.  Out  of  one  thousand  two  hundred 
sixty  disputes  submitted  by  both  parties  in  the  em- 
pire between  1902  and  1908,  nine  hundred  eight 
were  settled  either  by  agreement  or  awards  accepta- 
ble to  both  parties.  In  seventy-six  cases  the  board 
failed  to  reach  a  decision. 

Mercantile  courts  for  the  settlement  of  disputes 
between  merchants  and  their  employees  were  estab- 
lished in  1904. 

For  the  settlement  of  individual  disputes,  the 
German  industrial  courts  are  composed  of  at  least 
four  assessors  and  a  president  and  vice-president. 
The  latter  must  belong  to  neither  side  of  the  con- 
troversy. All  the  officers  of  an  industrial  court 
except  the  assessors  are  paid  salaries.  The  position 
of  assessor  is  regarded  as  honorary.  In  disputes  of 
great  importance  several  assessors  may  be  called, 
but  they  are  always  present  in  equal  numbers  from 
both  sides.  They  are  drawn  from  separate  lists, 
one  elected  by  the  employers  and  one  by  the  em- 
ployees.    Different  cities  elect  assessors  in  varying 


GERMAN    SOCIAL   JUSTICE  'j'] 

numbers  according  to  the  business  and  local  regula- 
tions. Berlin  has  four  hundred  twenty,  Dortmund 
three  hundred  forty-six,  Leipzig  ninety,  and  thirty 
deputy  assessors.  Small  fees  are  collected  by  the 
courts  and  small  fines  are  levied.  The  municipality 
must  bear  all  expenses  of  the  courts  not  covered  by 
fees  and  fines. 

Industrial  courts  operate  not  only  for  the  concil- 
iation or  legal  decision  of  individual  disputes  and 
the  conciliation  and  arbitration  of  collective  dis- 
putes, but  for  the  guidance  of  public  opinion  and 
of  public  officials  and  legislative  bodies  in  matters 
w^here  expert  advice  is  needed.  The  jurisdiction  of 
industrial  courts  in  individual  disputes  is  limited  by 
the  arbitration  courts  of  the  guilds,  organized  quite 
like  the  industrial  courts,  or  by  legal  statute,  but 
generally  extending  over  all  industrial  occupations. 
Special  courts  exist  for  special  industries.  Even 
after  a  court  is  organized  for  hearing  in  an  individ- 
ual dispute  or  a  collective  dispute,  it  is  charged  with 
the  duty  of  attempting  conciliation  at  any  time  be- 
fore a  decision  is  given,  if  conciliation  seems  feasi- 
ble. Hearings  generally  are  public,  though  they 
may  be  private.  The  decisions  of  the  court  in  in- 
dividual disputes  are  determined  by  a  majority  vote. 
In  the  determination  of  individual  disputes,  the  de- 


78  INDUSTRIAL   ARBITRATION 

cisions  are  subject  to  appeal  to  the  local  civil 
court,  or  they  may  be  contested  by  "opposition" 
where  a  judgment  has  been  given  by  default.  Op- 
position is  merely  a  process  by  which  a  defaulted 
judgment  may  be  reopened.  The  appeals  are  lim- 
ited to  amounts  involving  twenty-three  dollars  and 
eighty  cents. 

Table  No.  4,  on  page  79,  shows  an  epitomized 
history  of  German  strikes  from  1903  to  1912.  The 
figures  for  Berlin  are  given  separately  but  included 
in  the  summary  for  Prussia,  the  figures  of  which 
are  included  In  the  summary  for  the  German  Em- 
pire. The  summary  shows  that  the  empire  had  the 
greatest  number  of  strikes  in  1906,  although  fewer 
strikers  were  involved  than  in  1905.  For  the  whole 
empire,  the  table  shows  an  average  of  more  than 
two  thousand  one  hundred  strikes  for  the  ten-year 
period.  The  last  three  columns  of  the  table  show 
the  result  of  the  strikes  for  the  period.  An  average 
of  four  hundred  eight  strikes  annually  were  com- 
pletely successful,  while  an  average  of  eight  hun- 
dred fifty-eight  were  partially  successful  and  an 
average  of  eight  hundred  sixty-five  were  complete 
failures. 

The  table  at  the  bottom  of  page  80  shows  the 
results  of  strikes  for  three  years,   1909,   1910  and 


GERMAN    SOCIAL   JUSTICE 


79 


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INDUSTRIAL    ARBITRATION 


191 1,  computed  upon  a  percentage  basis;  also  the 
result  of  strikes  computed  upon  the  number  of  strik- 
ers involved.  For  the  three  years,  nineteen  per 
cent,  of  the  strikes  were  fully  successful,  forty-one 
per  cent,  were  partially  successful  and  fifty-nine 
and  seven-tenths  per  cent,  were  unsuccessful.  Thir- 
teen per  cent,  of  the  strikers  were  successful  in  their 
cause,  fifty-four  per  cent,  were  partially  successful 
and  thirty-two  per  cent,  failed. 

In  191 1,  an  average  year,  there  were  two  hundred 
thirty-two  lockouts,  involving  slightly  less  than  two 
thousand  establishments  and  about  one  hundred 
forty  thousand  workers  out  of  a  total  of  three  hun- 
dred thousand.  Lockouts  were  fully  successful  in 
thirty-one  per  cent,  of  the  cases,  partially  successful 
in  sixty-three  per  cent,  and  unsuccessful  in  six  per 
cent,  of  the  cases. 

Between  1902  and  1908,  applications  for  a  board 
of  arbitration  were  made  by  both  sides  in  about 


TABLE  NO.  5 


Percentage  of  Strikes 

Percentage  of  Strikers 

Year 

Fully 
Success- 
ful 

Partly 
Success- 
ful 

Unsuc- 
cessful 

Fully 
Success- 
ful 

Partly 
Success- 
ful 

Unsuc- 
cessful 

1909 

1910 

1911 

18.4 
19.8 
19.4 

33.8 
43.0 
46.2 

47.8 
37.2 
34.4 

14.5 
13.1 
12.1 

44.9 
56.1 
62.3 

40.6 
30.8 
25.6 

GERMAN    SOCIAL    JUSTICE  8i 

twelve  hundred  cases,  by  employees  only  in  eleven 
hundred  cases  and  by  employers  only  in  less  than 
fifty,  a  total  of  two  thousand  three  hundred  fifty 
cases.  There  was  an  agreement  before  an  award 
was  given  in  seven  hundred  seventy-eight  cases,  an 
award  in  one  hundred  ninety-three  cases,  and  nei- 
ther an  agreement  nor  an  award  in  four  hundred 
sixty-one  cases.  Both  sides  accepted  the  award  of 
the  arbitration  board  in  one  hundred  thirty  cases, 
and  it  was  accepted  by  tlie  employers  only  in  twen- 
ty-seven cases,  the  employees  only  in  forty-two 
cases  and  by  neither  side  in  thirteen  cases.  In  1908, 
a  typical  year,  there  were  more  than  one  hundred 
thousand  cases  of  individual  disputes  between  work- 
men and  employers  in  the  German  Empire  brought 
upon  complaint  of  the  workmen  and  about  six  thou- 
sand cases  brought  upon  complaint  of  the  employ- 
ers. Of  this  number,  agreement  was  reached  in 
nearly  fifty  thousand  cases.  There  was  a  judgment 
by  default  in  eleven  thousand  cases  and  final  judg- 
ment in  eighteen  thousand  cases.  The  claim  of  the 
plaintiff  was  renounced  by  the  defendant  in  about 
three  thousand  cases  and  acknowledged  in  fifteen 
hundred  cases. 

The    law    requires    the    formation    of    industrial 
courts  in  all  towns  of  over  twenty  thousand  popula- 


,B2  INDUSTRIAL    ARBITRATION 

tion,  but  they  may  be  formed  elsewhere  at  the  op- 
tion of  the  state  or  on  joint  application  of  employers 
and  work  people. 

The  industrial  code  provides  for  workmen's  com- 
mittees in  collieries  and  industrial  works  of  certain 
kinds.  They  constitute  a  private  arrangement  be- 
tween employer  and  work  people.  In  the  larger 
cities  wage  agreements  are  common.  They  fix  the 
scale  of  wages,  hours,  overtime  and  other  conditions 
of  employment.  Over  three  thousand  agreements 
are  in  force.  In  1906  alone,  agreements  were 
signed  affecting  some  three  hundred  thousand  work 
people.  Employers  complain  that  such  agreements 
have  been  made  the  entering  wedge  by  which  higher 
and  higher  wages  are  exacted.  Agreements  fix  a 
minimum  rate  and  therefore  are  a  boon  to  the  in- 
efficient and  of  no  avail  to  the  very  efficient  worker, 
say  the  employers.  Conciliation  boards  and  courts 
of  arbitration  have  added  greatly  to  the  significance 
and  scope  of  special  agreements  by  holding  them  to 
apply  to  all  workmen  in  a  given  industry,  whether 
organized  or  not.  In  larger  cities,  workmen  are 
more  perfectly  organized  than  in  smaller  cities. 

The  influence  of  Socialism  as  a  potent  factor  In 
German  society  and  consequently  in  German  Indus- 


GERMAN    SOCIAL   JUSTICE  83 

try  Is  felt  more  keenly  now  than  any  time  since  1875, 
when  the  first  union  of  Socialist  forces  was  effected. 

Two  great  revolutions  took  place  during  the 
eighteenth  and  early  part  of  the  nineteenth  century. 
One  was  the  industrial  revolution  led  by  Robert 
Owen  and  followed  the  age  of  invention  when  the 
process  of  manufacturing  textile  fabrics  was  trans- 
formed by  the  advent  of  the  machine.  This  revolu- 
tion began  in  England.  Another  great  revolution 
was  that  in  the  realm  of  thought,  having  its  origin 
in  France  and  owing  its  Inspiration  to  the  teachings 
of  Voltaire,  St.  Simon,  Montesquieu  and  Rousseau. 

In  the  wake  of  these  revolutions  is  a  third,  mainly 
political,  now  surging  in  Germany  and  Russia.  It 
began  after  the  Revolution  of  1848,  with  a  lecture 
by  Lassalle  in  Berlin,  presenting  the  historical  and 
philosophical  origin  of  the  state.  This  date  is  called 
the  birthday  of  German  Socialism.  Lassalle  con- 
tended that  the  Revolution  of  1848  had  freed  the 
fourth  estate  as  the  first  French  Revolution  had  freed 
the  third.  Later  he  organized  the  Universal  Ger- 
man Workingman's  Association,  out  of  which  grew 
the  Social  Democratic  party.  In  1868,  the  associa- 
tion adopted  the  international  program  of  Karl 
Marx  and  the  next  year  the  Social  Democratic 
Workingman's  party  was  formed  at  Eisenach. 


84  INDUSTRIAL    ARBITRATION 

After  the  Franco-Prussian  War,  speculation  pre- 
cipitated a  wide  business  depression  and  a  fall  in 
wages.  Men  were  thrown  out  of  employment  and 
distress  was  universal.  What  was  more  natural  than 
the  rapid  rise  of  a  party  which  offered  a  specific 
program  of  relief?  The  first  effect  of  the  union  of 
Socialist  forces  in  1875  was  seen  in  the  elections  of 
1877.  In  1 87 1,  the  party  cast  about  one  hundred 
twenty-five  thousand  votes,  electing  two  members 
of  the  Reichstag.  In  1877,  it  cast  nearly  a  half 
million  votes,  electing  twelve  deputies. 

Popular  vote  Deputies 

1871 124,655  2 

1877 493,288  13 

1887 763,128  11 

1893 1,786,738  44 

1898 2,107,076  56 

1903 3,010,771  81 

1907 3,258,968  43 

1912 4,250,399  112 

The  growth  of  the  party  since  1871  is  indicated 
by  the  popular  vote  and  deputies  sent  to  the  Reichs- 
tag in  typical  years.  Although  the  party  polled 
more  votes  in  1 907  than  in  1 903,  the  number  of  dep- 
uties elected  was  less,  owing  to  the  unbalanced  sys- 
tem of  representation.  There  was  an  enormous  gain 
in  191 2  both  in  popular  vote  and  number  of  dep- 
uties. 


GERMAN    SOCIAL    JUSTICE  85 

In  sixty-eight  towns  the  Socialist  party  has  at 
least  one  daily  newspaper  and  in  three  towns  two 
or  more  newspapers.  Although  the  membership  in 
the  Socialist  trade  unions  is  more  than  two  and  one- 
half  millions,  by  no  means  all  the  membership  is 
organized  for  political  purposes.  A  large  part  of 
the  membership  has  nothing  to  do  with  the  political 
propaganda  of  the  Social  Democratic  party. 

Social  Democratic  organizations,  however,  have 
been  foremost  in  directing  the  working  men's 
strikes.  The  most  serious  strike  ever  known  in 
Germany  occurred  in  the  coal  mines  of  Westphalia 
and  the  Rhenish  provinces  in  1889.  It  lasted  only 
a  few  weeks  and  resulted  in  a  substantial  victory 
for  the  strikers.  Public  opinion  and  government 
interference  were  responsible  for  a  strikers'  victory 
in  the  Westphalian  coal  mine  strike  of  1905.  The 
unyielding  attitude  of  the  colliery  owners  cost  them 
a  reduction  in  hours  of  labor,  abolition  of  fines, 
workmen's  committees  guaranteed  by  law  and  other 
important  concessions. 

During  the  fifteen  years,  1890- 1905,  the  Social 
Democratic  unions  were  involved  in  over  eleven 
thousand  strikes  and  lockouts  in  which  nearly  one 
and  a  half  million  persons  were  concerned.  In  the 
single  year  of  1906,  these  organizations  spent  three 


86  INDUSTRIAL    ARBITRATION 

and  one-quarter  million  dollars  in  strikes  and  lock- 
outs.^ 

While  Germany  has  gone  very  much  further  than 
any  other  European  country  in  doing  the  small 
things  which  secure  a  minimum  of  comfort  to  her 
work  people,  the  plane  of  living,  measured  by  world 
standards,  is  still  far  beneath  that  which  painstaking 
skill  in  industrial  works  ought  to  command.  In 
this  respect,  the  German  workman  is  much  worse 
off  than  the  American  wage  earner.  Particularly 
is  this  so  if  he  is  highly  efficient,  because  maximum 
wages  and  living  standards  are  much  lower  in  Ger- 
many. But  notwithstanding  the  paternalistic  en- 
deavors of  the  German  state  to  secure  minimum 
standards  of  comfort  among  the  working  classes, 
industry  is  not  likely  to  be  established  on  a  stable 
basis  until  the  shackles  of  aristocratic  preferences 
are  thrown  off.  The  Social  Democrats  are  bent  on 
accomplishing  this  feat  and  it  is  uncertain  how  long 
the  struggle  may  continue. 


'  From  2,551  branches  with  a  membership  of  277,659  in 
1891,  the  Social  Democratic  unions  had  grown  to  11,878 
branches  with  a  membership  of  2,530,390  in  1912.  The  total 
membership  of  the  German  trade  unions,  including  the  Social- 
ist unions,  in  1912,  was  3,256,819. 


CHAPTER  IV 


FRENCH   EXPERIMENTS 


INDUSTRIAL  arbitration  and  conciliation  In 
France  dates  practically  from  the  creation  of 
the  councils  of  experts  {Conseils  des  Prud'hommes) 
by  Napoleon  I  In  1806,  after  his  return  from  Elba. 
These  councils  were  the  successors  to  the  ancient 
corporative  tribunals  which  had  held  certain  juris- 
diction in  the  silk  trade  and  which  were  swept  away 
when  the  trade  guilds  were  abolished  In  1791. 

The  trade  guilds  had  existed  In  France  from  the 
time  of  the  Middle  Ages.  They  had  arisen  as  a 
counter-irritant  to  the  tyranny  of  feudalism  and  In 
time  had  come  to  exercise  a  tyranny  that  was  quite 
as  obnoxious  to  Turgot,  minister  of  Louis  XVI,  as 
was  feudalism  to  the  earlier  French  monarchs. 
Work  in  different  trades  was  conducted  by  a  few 
master  workmen,  incorporated  into  guilds,  who  en- 
joyed a  complete  monopoly  of  production. 

Inhabitants  of  Lyons,  center  of  the  silk  Industry, 
had  been  loyal  to  the  first  Napoleon  and  feted  him 

87 


88  INDUSTRIAL    ARBITRATION 

on  his  return.  Incidentally,  they  took  diplomatic 
advantage  of  his  good  feeling  toward  them  in  1806 
to  ask  the  restoration  of  the  corporative  tribunals. 
The  councils  of  experts  were  created  in  response  to 
this  request. 

The  councils  of  experts  originally  were  composed 
of  five  employers  and  four  foremen,  while  the  guild 
tribunal  was  composed  entirely  of  manufacturers. 
The  councils  of  experts  were  established  to  settle 
minor  difficulties  by  conciliation,  or,  in  the  failure 
of  conciliation,  to  adjudicate  formally  any  matter 
involving  less  than  sixty  francs.  The  bureau  of 
conciliation,  composed  of  one  manufacturer  and  one 
foreman,  met  once  a  day  while  the  general  bureau 
of  arbitration  met  once  a  week  to  decide  cases  in 
which  the  bureau  of  conciliation  had  failed.  By 
1804,  fourteen  French  towns  had  established  coun- 
cils of  experts.  In  1894,  there  were  one  hundred 
seventeen  councils  in  France. 

As  early  as  1867  premiums  were  offered  at  the 
exhibition  in  Paris  for  conspicuous  successes  in  es- 
tablishing friendly  relations  between  "masters  and 
men,"  and  many  interesting  examples  of  well-re- 
quited effort  from  Germany  and  France  were  of- 
fered. 

The  explosive  character  of   French  society  has 


FRENCH    EXPERIMENTS  89 

become  a  sinister  platitude  of  the  historian,  the  most 
familiar  phase  of  that  country's  political  and  social 
life  during  the  last  century.  While  it  is  true  that 
France  enjoyed  comparative  tranquillity  for  a  period 
of  forty  years,  the  elements  of  self-destruction  are 
still  present,  despite  heroic  sacrifices  and  remarkable 
unity  in  warding  off  the  German  invader. 

It  is  too  much  to  expect  that  French  industry  was 
very  peaceful  in  a  period  when  the  people  were 
fighting  behind  barricades  in  the  streets  of  Paris 
for  fundamental  political  rights.  It  is  too  much  to 
expect  that  France  made  any  considerable  progress 
toward  industrial  peace  when  its  people  were  sub- 
merged in  blood  by  succeeding  political  revolutions. 
While  the  political  revolution  has  flourished  in 
France  the  Industrial  revolution  has  also  waged 
with  increasing  fury. 

Within  a  brief  space,  it  is  difficult  to  present  a 
true  picture  of  French  industry  during  the  years 
immediately  following  the  Restoration — the  en- 
thronement of  Louis  XVIII  in  181 5.  It  is  true  that 
until  after  the  Revolution  of  1830,  the  working 
classes  were  passive.  But  their  misery  was  in  in- 
verse proportion  to  the  government's  concern  for 
them.  The  working  classes  were  hostile  to  the  gov- 
ernment because  they  were  bitter  against  the  Boiir-^ 


90  INDUSTRIAL    ARBITRATION 

bons.  They  had  really  gained  very  little  by  the 
first  revolution,  since  it  made  no  difference  who  were 
their  oppressors,  if  oppression  remained  a  fact.  The 
revolution  had  merely  marked  the  rise  of  an  indus- 
trial bourgeoisie,  equally  as  unfortunate  for  the 
workers  as  the  old  landed  aristocracy  of  the  Bour- 
bons. The  French  working  classes  suffered  severe 
hardships  from  the  introduction  of  machines — di- 
minished wages  and  unemployment.  Imperfect  and 
defective  machines  and  unventilated  mines  took  a 
heavy  toll  of  lives  and  spread  disease.  The  intro- 
duction of  women  and  children  into  industry  as 
competitors  of  males  further  depressed  wages. 
Damp  cellars  without  light  or  air,  where  the  work- 
men were  compelled  to  live,  added  to  their  torture. 
The  French  constitution  of  1791  had  declared 
that  there  should  be  a  general  bureau  of  public  aid 
for  the  purpose  of  bringing  up  foundlings,  of  car- 
ing for  the  infirm  poor,  and  of  providing  work  for 
such  of  the  able-bodied  poor  as  were  unable  to  ob- 
tain it  by  their  own  efforts.  This  was  merely  the 
English  poor  tax  in  another  form.  The  constitu- 
tion of  1793  declared  that  society  owed  a  living  to 
its  unfortunate  citizens,  either  by  procuring  work 
for  them  or  by  assuring  the  means  of  life  to  those 
unable  to  labor.     But  the  constitution  of  1793  also 


FRENCH    EXPERIMENTS  91 

declared  that  society  not  only  should  provide  labor 
for  its  citizens  but  that  this  labor  should  insure  their 
subsistence.  After  1793,  this  theory  was  dropped 
in  the  constitutions  of  the  French  people  but  the 
revolution  of  1848  revived  the  doctrine  and  it  later 
was  adopted  as  a  formula  of  the  socialistic  school. 

The  Revolution  of  July,  1830,  the  Revolution  of 
1848  and  the  establishment  of  the  present  republic 
are  beacon  lights  which  shed  their  rays  on  bivou- 
acked armies  through  which  and  by  which  French 
society,  purged  of  the  curse  of  Bourbonism,  has 
been  plunged  into  woes  scarcely  less  bitter.  But 
there  is  a  cause  for  hope.  Between  two  extremes  of 
irresponsible  socialism,  syndicalism  and  anarchy,  on 
the  one  hand,  and  a  reactionary  spirit  of  aristocratic 
atavism  on  the  other,  the  social  consciousness  of  the 
French  people  has  flowed  on  in  ever-increasing  vol- 
ume and  more  and  more  devoid  of  the  elements 
which  make  for  self-destruction. 

If  we  are  to  understand  what  France  has  accom- 
plished toward  the  achievement  of  industrial  peace, 
we  must  at  least  know  briefly  the  succession  of 
events  of  the  last  century. 

In  1815  the  use  of  machinery  in  the  difl"erent 
branches  of  industry  had  not  become  general.  The 
home  and  not  the  factory  was  the  seat  of  the  textile 


92  INDUSTRIAL    ARBITRATION 

industry.  Now,  all  this  has  changed.  To-day,  the 
industrial  output  of  France  is  valued  at  more  than 
three  billion  dollars  annually.  This  sum  is  more 
clearly  understood  when  we  remember  that  French 
industry  consumed  about  one  million  tons  of  coal 
annually  in  the  last  century  and  thirty-seven  times 
that  amount  at  the  beginning  of  the  present.  The 
consumption  of  raw  cotton  has  increased  enormously 
from  1 815  to  the  present  date;  the  production  of 
brass  from  a  little  over  two  hundred  thousand  tons 
in  1830  to  somewhat  less  than  three  million  tons; 
the  production  of  iron  from  one  hundred  fifty  thou- 
sand tons  in  1830  to  about  a  million  tons;  and  the 
production  of  steel  from  five  thousand  tons  in  1 830 
to  more  than  two  hundred  thousand  times  that 
amount.  These  contrasts  present  one  aspect  of  the 
industrial  revolution  and  signify  the  growing  acute- 
ness  of  the  industrial  problem  due  to  the  multiplica- 
tion of  industry. 

At  the  close  of  the  reign  of  Charles  X  in  1830, 
twenty-four  per  cent,  of  the  French  people  lived 
in  the  city.  In  1896,  the  percentage  of  the  urban 
population  had  increased  to  forty  per  cent.  In  1906, 
it  was  only  two  per  cent,  greater  than  in  1896. 
France  probably  is  less  troubled  from  a  congested 
population  than  any  other  European  country. 


FRENCH    EXPERIMENTS  93 

The  Revolution  of  July,  1830,  was  not  without  its 
effect  on  the  industrial  life  of  the  country.  Dis- 
turbances became  more  and  more  common.  In  Oc- 
tober, 1 83 1,  the  silk  weavers  at  La  Croix-Rousse 
at  Lyons  demanded  an  increase  in  wages.  The  pre- 
fect made  an  attempt  at  mediation  which  was  bit- 
terly resisted  by  the  employers.  A  minimum  tariff 
of  wages,  drawn  up  under  the  direction  of  the 
mayor  by  delegates  from  the  working  men,  the  em- 
ployers' delegates  having  refused  to  act,  was  abol- 
ished, but  not  until  the  national  guard  had  been 
compelled  to  retreat  in  the  face  of  an  armed  body 
of  strikers.  The  years  1832,  1833  and  1834  were 
marked  by  serious  insurrections  of  the  working  men 
in  a  score  of  industrial  cities.  Paris  passed  through 
a  fierce  conflict  at  this  time. 

Following  these  outbreaks,  a  law  of  Aj^ril  10, 
1834,  against  meetings  and  associations  raised  the 
fine  of  from  sixteen  to  two  hundred  francs  in  the 
Napoleonic  code  to  five  times  that  amount  and  per- 
mitted imprisonment.  But  the  law  applied  to  in- 
dividual members  of  an  association  whereas  the 
Napoleonic  code  was  aimed  only  at  the  instigators, 
chiefs  or  directors. 

In  1 84 1  a  child  labor  law,  bitterly  opposed  by 
the  employers,  was  passed.     The  act  applied  to  es- 


94  INDUSTRIAL    ARBITRATION 

tablishments  where  mechanical  motive  power  was 
used  and  which  gave  work  to  twenty  or  more  em- 
ployees. It  fixed  the  age  limit  at  twelve  years  but 
authorized  eight  hours  of  labor,  broken  by  rest,  for 
children  of  from  eight  to  twelve  years ;  twelve  hours 
of  labor  from  twelve  to  thirteen,  and  forbade  night 
work  for  children  under  thirteen.  Under  the  age 
of  twelve,  apprentices  were  required  to  attend 
school. 

It  was  during  the  reign  of  Louis  Philippe,  1830- 
48,  that  the  ideas  of  St.  Simon,  Enfantin  and  Che- 
valier began  to  find  a  lodgment  in  the  minds  of  the 
French  people.  Fourier  Cabot,  Pierre  Leroux  and 
Louis  Blanc,  all  of  whom  were  either  collectivists 
or  communists,  found  scores  of  followers  during  this 
period.  Proudhon,  who  denied  the  validity  of  all 
property,  was  also  an  influential  figure  of  this  epoch. 
The  philosophies  of  these  teachers  added  to  the  un- 
rest of  the  times. 

The  Revolution  of  February  24,  1848,  which  over- 
threw the  monarchy  of  Louis  Philippe,  increased 
the  electorate  from  two  hundred  forty-one  thousand 
to  ten  million,  annulled  all  laws  restricting  freedom 
of  the  press,  set  on  foot  the  free  and  compulsory 
education  of  the  masses,  the  establishment  of  adult 


FRENCH    EXPERIMENTS  95 

schools  as  complements  of  the  primary  schools  and 
also  technical  instruction. 

The  Revolution  of  1848  also  proclaimed  the  right 
of  its  citizens  to  labor.  On  February  26th  the  fol- 
lowing decree  was  posted  on  the  walls  of  the  cap- 
itol : 

"The  provisional  government  of  the  French  re- 
public guarantees  the  subsistence  of  the  workmen 
by  labor.  It  agrees  to  guarantee  labor  to  all  citi- 
zens. It  recognizes  the  fact  that  working  men  should 
associate  themselves  together  in  order  to  enjoy  the 
legitimate  profit  of  their  labor." 

After  the  Revolution  of  1848,  and  under  the  dic- 
tatorship of  Monsieur  Louis  Blanc,  France  under- 
took seriously  the  socialization  of  credit,  labor, 
banks,  insurance  companies  and  the  railroads.  Na- 
tional workshops  were  established  by  the  govern- 
ment. One  article  of  the  Luxemburg  proclamation 
read : 

"The  right  to  labor  is  the  right  of  every  man  to 
labor  by  working.  Society  ought  by  all  productive 
and  benevolent  means  at  her  disposal  and  by  those 
which  will  be  subsequently  organized,  to  furnish 
labor  to  able-bodied  men  who  can  not  procure  it  in 
any  other  way." 

Another  article  of  the  same  proclamation  read  : 


96  INDUSTRIAL    ARBITRATION 

"The  main  guaranties  of  the  right  to  labor  are  lib- 
erty of  labor  itself,  freedom  to  form  labor  associa- 
tions, free  instruction,  professional  education,  sav- 
ings and  other  banks  and  the  establishment  by  the 
state  of  great  works  of  public  utility  to  provide  labor 
in  case  of  the  stoppage  of  work,  for  unoccupied 
hands." 

After  the  Revolution  of  1848  had  subsided,  there 
was  an  abundance  of  work,  due  to  the  reconstruction 
of  the  capitol,  all  of  which  made  Napoleon  III  very 
popular  with  the  working  people.  An  army  of 
nearly  a  half  million  was  employed  in  building  and 
other  public  works.  Under  the  influence  of  the 
English  trade  unions  and  the  mutual  credit  system 
and  people's  banks  of  Germany,  obtained  by 
Schulze-Delitzsch,  cooperative  societies  in  the  field 
of  consumption,  production  and  credit  began  to  mul- 
tiply in  France.  These  societies  had  grown  to  a 
membership  of  one  and  three-quarters  millions  at 
the  beginning  of  the  present  century. 

The  establishment  of  the  national  workshop  which 
followed  in  the  wake  of  the  revolution,  was  just 
about  the  last  step  in  the  demoralization  of  the 
French  workmen.  The  national  workshops  exacted 
only  a  nominal  service  for  a  daily  wage  from  the 
government,  varying  from  one-half  to  two  francs. 
The  inspiration  for  the  institution  of  the  workshops 


FRENCH    EXPERIMENTS  97 

was  a  noble  one,  since  they  were  established  out  of 
pity  for  the  unemployed,  but  the  high  purpose  of 
their  founders  did  not  contribute  to  their  success. 
The  number  employed  in  the  national  workshops 
soon  arose  to  more  than  a  hundred  thousand  and 
strikes  became  frequent. 

In  1850,  a  superannuation  fund  was  founded  by 
the  government  and  in  1851  free  judicial  aid  was 
provided  for  the  French  people. 

Under  Napoleon  III,  1848-1870,  certain  articles 
of  the  Napoleonic  code  interdicting  coalitions  were 
stricken  out.  An  act  of  Napoleon  III  also  abrogated 
a  law  of  1849,  putting  an  end  to  a  system  which 
forced  tribunals  to  judge  each  year  an  average  of 
seventy-five  trials  resulting  from  strikes.  The  law 
of  1849  against  coalitions  of  working  people  simply 
reproduced  certain  provisions  of  the  Napoleonic 
code.  A  new  law  recognized  the  right  of  the  work- 
ing men  to  concert  for  the  purpose  of  obtaining  an 
increase  in  wages  and  to  strike.  It  punished  only 
those  offenses  which  brought  about  simultaneous 
cessation  of  labor  by  means  of  violence,  menace  or 
fraud. 

After  the  restoration  of  the  empire  In  1862,  with 
Napoleon  III  as  king,  France  took  part  In  the  Cri- 
mean War  in   1854- 1856,  and  In   1857  participated 


98  INDUSTRIAL    ARBITRATION 

with  the  English  in  an  expedition  against  China. 
In  1859,  France  engaged  in  a  war  with  Austria. 
These  wars  tended  to  divert  the  attention  of  the 
people  from  industrial  works,  and  the  demands  for 
soldiers  prevented  the  disasters  which  might  have 
resulted  from  an  oversupply  of  labor.  Then  came 
the  Franco-Prussian  War  of  1870,  which  ended  in 
the  defeat  of  the  entire  French  army  under  Napo- 
leon III,  followed  by  the  establishment  of  a  third 
republic  with  Thiers  as  the  first  president.  During 
the  latter  years  of  Napoleon  Ill's  reign  and  the 
first  years  of  the  third  republic,  industry  was  para- 
lyzed. 

In  1883,  commissioners  and  inspectors  of  child 
labor  were  charged  with  the  enforcement  of  a  law 
of  1 85 1  regulating  the  hours  of  work  of  adults. 
In  1890  the  government  suppressed  the  obligation 
of  the  working  man  to  carry  a  certificate  and  pro- 
vided for  the  appointment  of  delegates  of  miners 
charged  with  securing  safe  conditions  for  labor.  In 
1893  a  free  medical  aid  system  was  founded  and 
in  1894  a  superannuation  fund  for  miners  was 
founded.  A  law  of  1898  awarded  an  indemnity 
to  working  men  injured  while  performing  any  or- 
dered task,  even  though  the  injury  be  due  to  the 
workman's  imprudence.    The  act  gave  an  indemnity 


FRENCH    EXPERIMENTS  99 

to  the  wife  or  children  in  case  of  the  worker's  death. 
In  1899,  the  indemnity  act  was  extended  to  certain 
agricultural  laborers. 

Until  1884,  the  French  government  was  bitterly 
antagonistic  to  labor  unions.  Since  1884,  the  gov- 
ernment has  maintained  more  or  less  benevolent  re- 
lations with  the  working  people.  Trade  unions  were 
legalized  in  that  year.  Bourses  du  travail,  it  was 
provided  by  an  act  of  1884,  might  be  established 
under  the  law  in  towns  of  five  thousand  inhabitants, 
and  here  labor  meetings  might  be  held  under  sub- 
sidy of  the  government.  The  bourses  provided 
meeting  halls  and  offices  for  secretaries  where  tele- 
phones, letter  files  and  stationery  were  provided  and 
the  franking  privilege  of  the  government  enjoyed. 
The  Paris  bourse  in  1909  received  twenty-three 
thousand  dollars  as  a  subsidy.  These  bourses  per- 
form the  functions  of  labor  exchanges  and  as- 
sist m.en  in  getting  work,  but  the  great  national 
trade  unions  do  not  enjoy  the  privileges  of  govern- 
ment subsidies,  and  the  membership  of  organiza- 
tions having  their  meeting  place  in  the  bourses  is 
very  uncertain.  Few  of  the  members  pay  dues  or 
assessments  and  the  organizations  have  no  benefit 
funds.  No  regular  meetings  are  held.  Neither  the 
C.   G.  T.  nor  the  Typographical  Union  had  any- 


loo         INDUSTRIAL    ARBITRATION 

thing  to  do  with  these  bourses.  There  are,  how- 
ever, solid  trade  union  organizations  in  France  with 
large  funds,  which  carry  on  works  similar  to  the 
national  unions  of  other  countries.  Among  these 
are  the  miners',  the  printers',  the  railroad  employ- 
ees' and  the  metal  workers'  unions.  The  member- 
ship of  labor  unions  numbers  something  over  a  mil- 
lion. 

The  French  Conseils  des  Prud' homines,  the  earli- 
est tribunal  in  that  country  for  the  settlement  of  in- 
dustrial disputes,  assumed  jurisdiction  of  individual 
disputes  only.  It  was  not  until  the  enactment  of 
the  conciliation  and  arbitration  law  of  1892  that 
legal  machinery  was  created  for  the  settlement  of 
collective  disputes. 

Under  the  act  of  1892,  the  initiative  may  be  taken 
by  the  parties  themselves,  or,  in  the  case  of  actual 
strikes  or  lockouts,  the  Initiative  may  be  taken  by 
a  justice  of  the  peace.  Both  parties  may  apply 
jointly  for  conciliation,  or.  If  only  one  applies,  It 
Is  the  duty  of  the  justice  of  the  peace  to  notify  the 
opposite  party,  who  must  reply  within  three  days. 
In  the  application  for  or  acceptance  of  conciliation, 
each  party  must  name  five  persons  to  act  as  its  rep- 
resentatives In  conciliation.  If  neither  party  applies 
for  conciliation,  It  is  the  duty  of  the  justice  of  the 


FRENCH    EXPERIMENTS  loi 

peace  to  request  the  parties  to  notify  him  of  their 
willingness  or  refusal  to  accept  conciliation  or  arbi- 
tration. 

The  justice  of  the  peace  is  ex-officio  chairman  of 
the  conciliation  committee.  Conciliation  failing, 
the  justice  of  the  peace  must  endeavor  to  obtain 
arbitration,  each  side  to  name  an  arbitrator  or  both 
to  agree  on  a  common  arbitrator.  If  arbitrators 
can  not  agree,  they  may  name  an  umpire  and  if 
they  are  unable  to  agree  upon  an  umpire,  he  is 
named  by  the  president  of  the  local  civil  tribunal. 
Decisions  must  be  in  writing  and  the  expenses  of 
hearings  are  borne  by  the  Communes.  Every  fea- 
ture of  the  act  is  voluntary.  Reports  of  concilia- 
tion committees,  arbitration  boards  and  requests  for 
and  refusal  of  conciliation  or  arbitration  are  to  be 
made  public. 

Between  1893  and  1903,  ten  years,  there  were 
nearly  six  thousand  strikes  and  lockouts  in  France. 
In  sixty-one  cases,  settlements  were  attempted  be- 
fore the  strike  or  lockout  and  in  one  thousand  three 
hundred  fifty-two  cases  settlement  was  attempted 
after  the  strike  or  lockout  had  begun.  Of  the  one 
thousand  four  hundred  thirteen  efforts  at  settlement 
there  was  a  refusal  or  rejection  of  settlement  in 
thirty-eight  per  cent,  of  the  cases.    Of  the  one  thou- 


102         INDUSTRIAL    ARBITRATION 

sand  four  hundred  thirteen  efforts  at  settlement,  the 
effort  was  initiated  in  five  hundred  fifty-six  cases 
by  the  justice  of  the  peace;  in  seven  hundred  eighty- 
two  cases  by  the  work  people;  in  forty-two  cases  by 
the  employer,  and  in  thirty-three  cases  by  both  par- 
ties. 

In  other  words,  there  were  five  thousand  eight 
hundred  seventy-four  strikes  and  lockouts  in  France 
in  ten  years,  1893 -1903,  and  one  thousand  four 
hundred  thirteen  efforts  at  settlement,  in  which  five 
hundred  ninety-five  were  successful  and  eight  hun- 
dred eighteen  failures.  There  were  settlements  in 
forty-two  per  cent,  of  the  efforts  at  settlement  and 
settlements  in  ten  per  cent,  of  the  total  strikes  and 
lockouts. 

The  table  No.  6  on  page  103  shows  that  there 
were  in  France  during  the  years  from  1905  to  191 2 
an  average  of  considerably  more  than  one  thousand 
strikes  each  year.  The  lowest  number  of  strikers 
in  any  one  year  was  slightly  less  than  one  hundred 
thousand  in  1908,  and  the  greatest  number  somewhat 
less  than  a  half  million  in  1905.  The  table  shows 
the  number  of  establishments  affected  and  the  days 
lost  on  account  of  strikes  for  each  year. 

The  table  No.  7  on  page  104  shows  the  operation 
of  the   French  conciliation  and  arbitration  act  of 


FRENCH    EXPERIMENTS 


103 


TABLE  NO.  6 

SHOWING    NUMBER    OF    STRIKES    FOR    EACH    YEAR,    1905-1912,    IN 
FRANCE,    WITH    NUMBER   OF    STRIKERS,    NUMBER   OF   ESTAB- 
LISHMENTS AFFECTED  AND  TIME  LOST  BY   STRIKERS* 


Year 

Strikes 

Strikers 

Establish- 
ments 

Dajs  Lost 

1905 

1906 

1907 

1908 

1909 

1910 

1911 

1912 

830 
1,309 
1,275 
1,073 
1,025 
1,502 
1,471 
1,116 

177,666 
438,466 
197,961 
99,042 
167,492 
281,425 
230,646 
267,627 

5,302 

19,637 

8,365 

4,641 

5,672 

14,175 

16,148 

6,656 

2,746,684 
9,438,594 
3,562,220 
1,720,743 
3,559,880 
4,830,044 
4.096,393 
2,318,459 

•Compiled  from  Annual  Reports  of  Ministcre  du  Travail  et  de  la 
Prcvoyance  Sociale:  Statistique  des  Graves  et  des  Recours  a  la  Concilia- 
tion et  di  I' Arbitrage. 


1892  for  the  eleven  years  from  1902  to  1912.  In 
that  period  there  were  fourteen  hundred  fifty-five 
boards  of  conciliation  formed  in  sixty-one  per  cent, 
of  the  cases  in  which  there  were  appeals  for  con- 
ciliation or  arbitration.  The  number  of  disputes 
ended  by  boards  of  conciliation  and  arbitration  was 
sixty  and  eight-tenths  per  cent,  of  the  total  number 
of  boards  formed.  In  five  hundred  three  cases 
strikes  were  declared  after  disagreement  of  the 
boards  of  conciliation.  The  table  shows  that  there 
were  very  few  instances  of  appeal  to  arbitration  as 
compared  to  the  number  of  appeals  for  conciliation. 
Table  No.  8,  page  105,  not  only  shows  the  num- 
ber of  strikes  for  the  period  from  1902  to  191 1,  but 


104         INDUSTRIAL    ARBITRATION 
TABLE  NO.  7 

OPERATION    OF    FRENCH    CONCILIATION    AND    ARBITRATION    ACT    OF 
1892  FOR  THE  ELEVEN   YEARS,    1902-1912* 

Number  of  boards  of  conciliation 1,455 

Proportion  of  boards  in  comparison  to  the  number 

of  appeals  61% 

Number  of  boards  having  ended  the  disputes — 

By  conciliation   831 

By  arbitration   55 

Total 886 

Proportion  of  disputes  ended  in  comparison  to  the 

number  of  boards 60.8% 

Number  of  refusals  of  recourse  to  arbitration — 

By  masters  94 

By  workers 40 

By  both  parties 90 

Total 224 

Number  of  strikes  ended  indirectly  by  the  boards  of 
conciliation  after  the  meetings  of  the  boards 65 

Number  of  strikes  declared  or  continued  after  dis- 
agreement of  the  boards  of  conciliation 503 

*Statistique  des  Greves  et  des  Recours  a  la  Conciliation  et  A  I'Arbi- 
trage  Survenus  pendant  I'Annce  1912,  p.  xv. 

the  number  of  appeals  made  upon  the  initiative  of 
masters,  workers,  both  parties  and  the  justice  of  the 
peace  under  the  act  of  1892.  There  were  appeals 
for  boards  of  conciliation  or  arbitration  in  twenty 
and  three-tenths  per  cent,  of  the  strikes,  but  in  eight 
hundred  thirty-six  cases  one  or  both  parties  rejected 
efforts  at  conciliation.  Other  features  of  the  opera- 
tion of  the  act  are  also  shown  by  the  table. 


FRENCH    EXPERIMENTS  105 
TABLE  NO.  8 

RESULTS    OF    EFFORTS    AT   CONCILIATION    AND    ARBITRATION    UNDER 
FRENCH  LAWS,   1902-1911* 

Number  of  strikes 11,706 

Number  of  appeals  before  strike 172 

Number  of  appeals  made  upon  the  initiative — 

Of  masters  51 

Of  workers 1,016 

Of  both   parties 100 

Of  justice  of  peace 1,213 

Total 2,380 

Proportion  of  appeals  in  comparison  to  the  number 

of  strikes   20.3% 

Number  of  strikes  ended  in  the  course  of  the  pro- 
cedure before  the  formation  of  a  board 86 

Number  of  rejections  of  attempted  conciliation — 

By  the  masters 696 

By  the  workers 42 

By  both  parties 98 

Total    836 

Number  of  disputes  abandoned  by  the  workers  or 

settled  immediately  after  a  refusal  of  conciliation  101 
Number  of  strikes  declared  or  continued  after  the 

refusal  of  conciliation 736 


*Statistique  des  Graves  et  des  Recoiirs  a  la  Conciliation  et  a  ['Arbi- 
trage Survenus  pendant  I'Annce  1912,  p.  xiv. 

Table  No.  9  on  page  107  shows  which  party  pre- 
vailed in  the  settlement  of  strikes  from  1902  to  19 12 
by  application  of  the  French  act  and  where  efforts 
to  apply  the  act  failed.  Strikers  seem  to  have  been 
more  successful  under  the  act  than  in  fighting  out- 
side the  act    Where  the  law  was  resorted  to  strikes 


io6         INDUSTRIAL    ARBITRATION 

were  successful  in  seventeen  and  two-tenths  per  cent, 
of  the  cases  and  where  the  application  failed,  strikes 
were  successful  in  only  seven  and  nine-tenths  per 
cent,  of  the  cases.  More  than  half  of  the  cases 
where  the  act  was  resorted  to  were  compromised 
and  nearly  half  of  the  strikes  where  the  act  was 
not  resorted  to  were  compromised. 

The  table  No.  lo  on  page  107  shows  the  percentage 
of  successful,  compromised  and  unsuccessful  strikes 
and  strikers  for  1902-1911  and  the  year  1912. 
While  twenty-one  and  two-hundredths  per  cent,  of 
the  strikes  from  1902  to  191 1  were  successful,  only 
twelve  and  seventeen-hundredths  per  cent,  of  the 
•strikers  succeeded.  About  forty-one  per  cent,  of 
the  strikes  and  thirty  per  cent,  of  the  strikers  failed 
between  1902  and  191 1.  The  statistics  for  1912  are 
not  especially  significant. 

The  act  of  1892,  says  Harris  Weinstock,  "has 
remained  practically  a  dead  letter,  as  neither  side 
has,  as  a  rule,  availed  itself  of  this  medium  for  the 
peaceful  settlement  of  their  difference." 

The  gravest  peril  in  French  industry  at  the  pres- 
ent time  is  the  influence  of  syndicalism.  The  policy 
of  syndicalism  was  first  adopted  at  a  congress  of 
trade  unions  held  at  Nantes  in  1894  and  at  Limoges 
in  1895.     Representatives  of  the  trade  unions,  which 


FRENCH    EXPERIMENTS  107 

TABLE  NO.  9 

SHOWING  MANNER  IN  WHICH   STRIKES  WERE  ENDED,  BY  APPLICA- 
TION OF  THE  FRENCH  ACT  OF  1892  ;  ALSO  WHERE  THE 
APPLICATION    OF    THE   ACT    FAILED* 

Disputes  ended  by  application  under  the  law 1,141 

Results — 

Successful 196,  or  17.2% 

Compromised  794,  or  69.6% 

Failed  151,  or  13.2% 

Disputes  in  which  the  application  of  the  law  failed. .....  1,239 

Results — 

Successful  98,or  7.9% 

Compromised  587,  or  47.4% 

Failed  554,  or  44.7% 

*Statistiq%ie  dcs  Grtvcs  et  des  Recours  d  la  Conciliation  et  d,  I'Arbi- 
trage  Survenus  pendant  V Annie  1912. 

TABLE  NO.  10 

RESULT   OF    STRIKES    FOR   TEN    YEARS,    1902-1911,    ALSO   RESULT   OF 
STRIKES   FOR  YEAR   1912* 


Str 

kes 

Strikers 

Results 

Average  for 

Ten  Years 

19021911 

In  1912 

Average  for 

Ten  Years 

1902-1911 

In  1912 

Successful   

Compromised    

Failed    

21.02 

38.02 
40.96 

17.29 
34.23 
48.48 

12.17 
57.62 
30.21 

6.78 
26.68 
66.54 

*Statistique  dcs  Grives  et  des  Recours  &  la  Conciliation  et  d  I'Arbi- 
trage  Survenus  pendant  I'Annce  1912,  p.  vii. 


had  adopted  syndicalism  in  1894  at  Nantes,  formed 
the  Confederation  Generate  dii  Travail.  In  1902, 
the  C.  G.  T.  formed  an  alliance  with  the  labor  ex- 
changes.    Trade  unions,  affiliated  with  the  C.   G. 


io8        INDUSTRIAL   ARBITRATION 

T.,  receive  four  thousand  six  hundred  pounds  a  year 
for  the  ostensible  object  of  finding  employment  for 
laborers,  but  it  is  now  pretty  well  assured  that  the 
fund  has  been  used  for  political  propaganda. 

Syndicalism  aims  at  the  destruction  by  force  of 
existing  organization  and  the  transfer  of  industrial 
capital  from  the  present  possessors  to  syndicates  or 
revolutionaiy  trade  unions.  This  it  seeks  to  accom- 
plish by  the  "general  strike."  As  early  as  1868  the 
International  Labor  Congress  at  Brussels  declared 
"that  if  production  were  arrested  for  a  certain  time, 
society  could  not  exist,  and  that  it  was  only  neces- 
sary for  producers  to  cease  to  produce  in  order  to 
make  government  impossible."  Five  years  later, 
the  Belgian  section  of  the  Internationalists  invited 
other  sections  to  prepare  for  a  general  strike.  But 
it  was  the  anarchist  Tortelier,  a  Parisian  carpenter, 
who,  in  1888,  first  suggested  the  general  strike  as  a 
definite  policy. 

It  was  Waldeck-Rousseau  who  put  through  the 
fundamental  law  in  1884  allowing  labor  unions  to 
become  syndicates,  that  is,  to  exercise  legal  collective 
action  in  defense  of  the  individual  interests  of  their 
members.  Various  municipalities,  having  estab- 
lished Bourses  du  Travail  in  1886,  a  law  was  soon 
passed  limiting  the  occupation  of  these  bourses  to 


FRENCH    EXPERIMENTS  109 

the  syndicates.  Millerand  secured  for  employees 
of  the  state  the  privilege  of  joining  unions  and 
forming  federations  and  Rouvier  secured  the  right 
to  school-teachers  and  postmen  to  form  themselves 
into  syndicates. 

Two  thousand  three  hundred  ninety-nine  unions, 
having  a  membership  of  two  hundred  thousand,  are 
said  to  have  belonged  to  the  Confederation  in  1906. 
These  unions  are  now  known  as  red  syndicates,  the 
others  as  yellow.  In  the  general  strike  of  trade 
unionism  in  France  in  1907,  the  total  number  of 
trade  unions  was  estimated  at  4,857,  of  which  2,399 
were  in  the  Confederation.  The  number  of  work- 
men belonging  to  trade  unions  was  estimated  at 
836,134,  including  203,273  who  belonged  to  the 
Confederation.  In  1908,  the  C.  G.  T.  was  joined 
by  the  Miners'  Association,  with  25,000  members, 
and  was  strengthened  by  additions  from  govern- 
ment workers.  In  actual  count,  the  C.  G.  T.  num- 
bered only  300,000  in  191 1  out  of  900,000  union 
members,  out  of,  in  turn,  9,000,000  French  work- 
men. 

The  greatest  leader  of  the  syndicalist  movement 
in  France  has  been  Georges  Sorel,  a  bitter  opponent 
of  parliamentary  socialism.  The  syndicalist  outline 
declares  for  the  emancipation  of  the  workers  by  the 


no         INDUSTRIAL    ARBITRATION 

workers  themselves  and  the  creation  by  them  of 
their  own  organs.  Unions  are  to  be  used  as  units 
of  production  and  distribution,  to  meet  after  the 
triumph  of  a  general  strike  and  to  decide  what  pro- 
duction is  necessary  to  meet  the  community's  needs ; 
to  make  an  equitable  distribution  of  the  work  to  be 
done,  taking  into  account  the  strength  and  capacity 
of  each  workman  and  leaving  him  free  to  produce 
in  accordance  with  the  amount  of  energy  he  can 
summon.  Syndicalism  does  not  propose  the  nation- 
alization of  society  but  seeks  to  dissolve  all  bureau- 
cratic centralization  and  to  syndicate  all  public  serv- 
ices ;  to  establish  a  new  economic  unit  belonging  to 
organized  body  of  syndicalists,  the  telephone  lines 
to  the  linemen  and  operators,  the  railway  to  the 
railway  workers,  the  theater  to  the  actors.  Syndi- 
calism espouses  direct  action  and  believes  in  that 
only.  It  appeals  exclusively  to  the  proletariat,  has  a 
constructive  program  and  thus  differs  from  anarch- 
ism. Its  chief  weapon  is  the  strike,  during  which 
children  of  the  strikers  are  to  be  shipped  to  cities 
distant  from  the  seat  of  the  strike  so  that  they  may 
not  hinder  the  men.  Strikers  are  to  be  fed  in  com- 
munists' kitchens  while  the  war  goes  forward. 

The  C.  G.  T.  is  now  a  factor  of  considerable  im- 
portance in  French  industrial  disputes.     It  was  the 


FRENCH    EXPERIMENTS  in 

C.  G.  T.  which  supported  the  postal  strikes  in  March 
and  May  of  1909,  which  all  but  demoralized  French 
business.  Had  the  C.  G.  T.  been  joined  by  the  rail- 
way employees  at  this  time  the  very  foundations 
of  the  republic  would  have  tottered.  The  strike  of 
the  stable  hands  at  Auteuil  in  the  following  June 
was  a  complete  failure.  Violence  and  sabotage  ac- 
companied this  strike.  Following  the  agitation  of 
1909,  a  measure  proposing  the  prohibition  of  strikes 
by  public  servants  was  discussed  but  nothing  was 
done,  and  in  the  latter  part  of  the  year  a  federation 
of  one  hundred  eighty-one  thousand  civil  servants 
was  formed.  It  represented  a  large  number  of  as- 
sociations of  state  employees. 

The  government  was  successful  in  putting  down 
the  seamen's  strike  in  March,  1910,  which,  in  its 
latter  stages,  was  supported  by  the  C.  G.  T.  Pro- 
ceedings were  instituted  against  the  president  and 
secretary  of  the  federation  and  against  five  hundred 
strikers. 

A  strike  of  ten  thousand  railway  men,  under  the 
auspices  of  the  C.  G.  T.,  took  place  in  May,  1910. 
The  first  strike  subsided  somewhat  and  then  grad- 
ually spread  to  the  north  and  west  and  on  October 
twelfth  resulted  in  a  general  strike  officially  called 
by  the  National  Federation  of  Railway   Servants. 


112         INDUSTRIAL    ARBITRATION 

The  train  service  was  badly  disorganized.  Violence 
was  common.  Prompt  and  effective  interference  by 
the  government  was  successful  in  restoring  order 
and  work  was  resumed  on  all  lines  October  eight- 
eenth. Prime  Minister  M.  Briand,  who  ten  years 
before  had  addressed  a  popular  meeting  as  a  dev- 
otee of  syndicalism,  was  finally  forced  to  resign 
and  some,  at  least,  of  the  dismissed  strikers  were 
restored  to  their  places. 

By  an  act  of  July  22,  1909,  a  permanent  arbi- 
tration council  was  created  by  the  French  govern- 
ment with  a  view  to  investigating  disputes  between 
shipping  companies  and  their  crews.  The  council 
has  headquarters  in  Paris. 

The  council  consists  of  three  members  appointed 
for  three  years  by  decree  drawn  up  on  the  proposal 
of  the  keeper  of  seals,  minister  of  justice,  and  se- 
lected from  among  the  ordinary  state  councilors, 
also  from  the  councilors  of  the  Court  of  Cassation; 
also  arbitrators  selected  for  three  years  by  the  em- 
ployers, who  shall  be  present  to  the  number  of  five 
at  each  arbitration ;  also  arbitrators  elected  for  three 
years  by  the  employees,  who  shall  be  present  to  the 
number  of  five  at  each  arbitration. 

The  three  members  from  the  State  Council  and 
Court  of  Cassation  elect  a  president  and  vice-pres- 


FRENCH    EXPERIMENTS  113 

Ident  and  constitute  the  central  section  of  the  Per- 
manent Arbitration  Council. 

In  each  maritime  district,  the  ship  owners  elect 
five  regular  and  five  deputy  arbitrators.  Each  of 
four  specified  classes  of  employees  in  each  maritime 
district  elects  five  regular  and  five  deputy  arbitra- 
tors. In  detail  the  act  sets  out  how  the  council  is 
made  up  for  the  settlement  of  a  collective  dispute. 
The  central  section  is  always  present.  Detailed  pro- 
visions are  also  set  out  for  the  election  of  arbitrators 
and  deputy  arbitrators  every  three  years. 

When  a  collective  dispute  arises,  the  parties  may 
submit  their  controversy  to  the  Director  of  the  Sea- 
men's Register,  or  he  may  take  the  initiative  in  an 
endeavor  to  conciliate  the  parties.  Upon  the  failure 
of  conciliation,  there  Is  a  roundabout  process  by 
which  the  services  of  the  arbitration  council  are 
offered  the  parties.  If  they  refuse  arbitration,  a 
certificate  to  that  effect  Is  entered  by  the  central 
section  of  the  council.  If  the  parties  agree  to  arbi- 
tration, the  court  is  convened.  It  has  full  power  of 
investigation,  hearing  and  of  giving  judgment,  al- 
though It  does  not  appear  that  either  party  is  bound 
by  the  judgment.  The  judgment  is  published.  The 
public  Is  not  admitted  to  the  council  meetings. 

On  the  face  of  it,  this  act  seems  too  cumbersome 


114         INDUSTRIAL    ARBITRATION 

— the  processes  are  too  indirect — to  be  of  very  much 
practical  advantage  in  settling  disputes. 

Public  opinion  in  France  is  just  as  uncertain  ap- 
plied to  an  industrial  problem  as  it  is  to  a  political 
dispute.  Lately,  public  opinion  has  been  arrayed 
on  the  side  of  the  government  and  has  enabled  it 
to  deal  summarily  with  unjustifiable  outbreaks  of 
the  working  people.  The  government  has  earnestly 
opposed  the  doctrine  that  the  state  employees  oc- 
cupy the  same  position  in  society  as  the  employees 
of  private  enterprise.  The  minister  of  labor  said 
to  Samuel  Gompers  in  1909  that  "the  work  of  post- 
men and  government  telegraphers,  for  example, 
must  go  on  uninterruptedly  if  the  country  is  to 
maintain  order,  peace,  communication  from  place 
to  place,  publicity  of  current  events  and  those  con- 
ditions of  commerce  in  which  above  all  other  classes 
the  masses  of  the  working  men  have  a  vital  inter- 
est." 

But  public  opinion  in  France  sometimes  follows 
exftreme  paths.  It  may  veer  from  pole  to  pole, 
avoiding  middle  courses  and  disregarding  prudence 
and  self-control.  It  may  be  with  the  government 
to-day  and  opposed  to  it  to-morrow. 

"The  French,"  says  Sir  Arthur  Clay,  "are  notori- 
ously a  thrifty  and  provident  nation,  and  although 


FRENCH    EXPERIMENTS  115 

no  doubt  a  considerable  number  of  the  population 
in  the  great  cities  are  possessed  with  a  spirit  of  un- 
rest, and  are  only  too  ready  to  welcome  revolution- 
ary agitation,  yet  when  the  imminence  of  a  social 
cataclysm  in  which  all  property  would  be  lost,  and 
innumerable  homes  destroyed,  was  brought  home  to 
their  minds,  the  national  characteristics  asserted 
themselves,  and  the  determination  of  the  public  to 
give  full  support  to  the  representatives  of  law  and 
order  in  taking  the  measures  necessary  to  protect 
them  from  so  awful  a  catastrophe,  was  manifested 
in  the  clearest  way/ 

"The  repeated  failure  of  the  C.  G.  T.  to  secure 
the  obedience  of  any  considerable  number  of  work- 
men to  its  commands  when  it  has  declared  a  'general 
strike,'  "  he  continues,  "has  done  much  to  reassure 
the  public,  and  to  destroy  their  belief  in  its  power 
as  an  enemy  of  society.  It  has  raised  the  cry  of 
'wolf  so  often  that  the  bourgeoisie  are  no  longer 
much  alarmed  by  its  repetition." 

Perhaps  no  better  summary  of  the  present  con- 
dition of  French  industry  and  the  working  classes 
can  be  found  than  is  contained  in  a  paragraph  from 
an  article  by  Alfred  Rambaud,  professor  in  the  Uni- 
versity of  Paris,  in  an  article  In  The  Historian's  His- 
tory of  the  Worlds 

"The  working  man  of  to-day  is  better  fed,  better 
clad,   better  housed,   more  generously   provided   in 

^  No  more  striking  evidence  of  the  truth  of  this  statement 
could  be  cited  than  the  unity  that  has  characterized  the  French 
resistance  to  German  military  oppression. 

'  Vol.  .23,  p.  215. 


116         INDUSTRIAL    ARBITRATION 

every  way  with  worldly  goods  than  was  the  working 
man  of  thirty  years  ago.  He  profits  by  all  the  in- 
ventions of  a  philanthropic  legislature,  enjoys  for 
himself  and  his  children  free  medical  service  and 
judicial  aid,  but  can  it  truly  be  said  that  he  is  hap- 
pier than  his  congener  of  fifty  or  sixty  years  ago? 
And  if  it  is  true,  will  he  admit  it?  It  is  ingrained 
in  the  nature  of  man  to  let  his  sufferings  for  the  lack 
of  certain  things  outweigh  his  happiness  in  the  pos- 
session of  others.  French  working  men  are  not  in- 
clined to  seek  comparisons  in  bygone  times,  they  re- 
fuse to  take  into  account  any  period  but  the  present, 
to  see  anything  but  the  existing  difference  between 
their  own  and  their  employer's  condition.  They 
display  a  greater  animosity  to-day  toward  the  bour- 
geois class,  that  has  made  for  them  many  sacrifices, 
than  was  ever  cherished  by  their  forerunners  against 
the  egotistical  employers  of  1830.  Many  among 
them  would  think  it  quite  right  to  work  only  eight 
hours  a  day  for  high  wages,  and  to  have  funds  es- 
tablished for  them  to  which  they  themselves  would 
not  have  to  contribute.  Others  also,  who  are  depos- 
itors in  savings  banks  and  mutual  aid  societies,  and 
in  receipt  of  the  income  assured  them  by  these  in- 
stitutions, give  themselves  airs  of  'proletarians'  after 
the  fashion  of  the  working  man  of  1830,  whose  only 
capital  was  a  pair  of  shrunken  arms.  If  they  vote 
it  is  very  often  in  favor  of  some  extremist  candi- 
date, as  though  they  had  a  horror  of  public  tran- 
quillity, and  were  not  themselves  the  first  to  suffer 
from  any  disturbance  of  the  peace.  Furthermore 
they  are  beset  by  solicitations  to  join  one  or  more 
of  the  many  socialistic  organizations — the  Blan- 
quists  or  the  Allemanists — whose  avowed  mission 
it  is  to  foment  hatred  between  the  classes,  to  pre- 


FRENCH    EXPERIMENTS  117" 

pare  the  way  for  a  'universal  strike,'  and  whose 
favourite  counsel  to  the  working  man  is  to  'study 
the  chemistry  of  revolution.'  " 

France's  activity  In  behalf  of  social  peace  has 
been  largely  of  an  inhibitive  character.  Very  few 
constructive  processes  have  been  attempted.  A  no- 
table exception  is  an  old-age  pension  plan  framed 
on  a  contributory  basis  and  inaugurated  in  1905. 
Pensions  of  from  five  to  twenty  francs  a  week  were 
paid  to  persons  at  least  sixty-five  years  of  age  and 
persons  permanently  infirm,  incapacitated  or  incur- 
able. The  expenses  of  the  system,  originally  shared 
by  the  state,  the  departments  and  the  communes, 
amounted  to  nineteen  million  dollars  in  1909  when 
there  were  a  half  million  beneficiaries.  In  191 2  the 
old  age  pension  system  was  revised  somewhat. 
Workers  and  employers  now  contribute  to  the  fund 
until  the  worker  is  sixty  years  old.  The  state  con- 
tributes one  hundred  francs.  About  nine  and  one- 
half  million  were  contributing  to  the  fund  in  191 2. 


CHAPTER  V 

A  COUNTRY  WITHOUT  STRIKES 

f  g  ^HE  Dominion  of  New  Zealand,  accredited 
M  as  the  origin  of  compulsory  industrial  arbi- 
tration, presents  an  array  of  social,  political  and 
industrial  phenomena  of  very  great  and  increasing 
interest  to  the  student  of  industrial  problems.  Col- 
onized by  English-speaking  peoj^le  of  rare  zeal  and 
determination  in  the  last  years  of  the  first  half  of 
the  nineteenth  century,  the  country  has  enjoyed  a 
history  peculiar  to  the  rugged  pioneers  who  settled 
on  the  land. 

New  Zealand  has  an  area  somewhat  less  than 
Great  Britain  and  Ireland  but  its  climate  is  far 
more  favorable  and  the  soil,  it  is  believed,  would 
support  a  population  of  near  ten  million  people. 
After  the  first  steps  in  the  colonization  of  the  island 
New  Zealand  found  itself  face  to  face  with  a  land 
problem  which  seriously  hampered  the  future 
growth  and  prosperity  of  the  country.  Foreign 
syndicates  had  bought  up  the  land,  and  determined 

Ii8 


A    COUNTRY    WITHOUT    STRIKES     119 

to  hold  it  for  speculative  rises  in  value,  prevented 
the  settlement  by  home  seekers,  who  might  be  ex- 
pected to  improve  and  develop  it.  This  was  the 
first  great  problem  which  confronted  those  men  who 
had  at  heart  the  healthy  development  of  the  country 
and  it  is  fair  to  say  that  they  settled  the  problem 
promptly  and  wisely. 

The  system  of  compulsory  arbitration  in  vogue 
in  New  Zealand,  as  a  matter  of  fact,  is  compulsory 
only  under  certain  conditions  but  it  is  the  nearest 
approach  to  a  mandatory  system  anywhere  in  use 
and  therefore  the  subject  of  wide  interest  by  stu- 
dents of  industrial  problems.  Whether  such  a  sys- 
tem of  conciliation  and  arbitration  as  New  Zealand 
has  found  adequate  will  operate  with  the  same  or 
approximate  degree  of  success  in  a  country  like  the 
United  States  may  be  determined  by  an  examina- 
tion of  social,  political  and  industrial  conditions  in 
the  two  countries.  While  conclusions  can  not  be 
exact  from  the  very  nature  of  the  question,  they 
can  not  be  very  far  wrong  if  we  take  into  considera- 
tion all  the  factors  bearing  on  the  subject. 

New  Zealand  is  not  a  country  without  strikes, 
as  some  proponents  of  the  New  Zealand  system 
would  maintain,  but  the  mere  fact  that  during  the 
first  nineteen  years  after  the  enactment  of  the  law 


120         INDUSTRIAL    ARBITRATION 

there  were  but  forty-two  strikes  in  the  Dominion 
and  half  of  these  were  without  the  scope  of  the  law, 
is  a  splendid  testimonial  to  the  wisdom  of  its  fra- 
mers.  Whether  they  found  a  universal  system  or  not, 
they  are  to  be  accredited  with  having  found  a  sys- 
tem that  works  well  in  the  country  for  which  it  was 
specifically  designed. 

Although  New  Zealand  has  an  area  less  than  any 
one  of  seven  of  the  largest  American  common- 
wealths, its  population,  now  about  one  million,  is 
only  one-half  as  great  as  that  of  Wisconsin  and  less 
than  the  population  of  any  one  of  thirty-one  Ameri- 
can states. 

New  York  City  has  a  population  of  more  than 
four  times  that  of  New  Zealand.  Chicago  is  twice 
as  large  and  Philadelphia  is  larger  by  one-half. 
The  United  States  has  forty-seven  other  cities  each 
with  a  population  of  more  than  one  hundred  thou- 
sand, while  New  Zealand  has  only  one,  Auckland, 
In  this  class.  Three  other  New  Zealand  cities  have 
a  population  of  more  than  sixty  thousand,  but  aside 
from  these  four,  there  are  only  seven  cities  with  a 
population  of  more  than  eight  thousand.  The  four 
principal  cities  of  New  Zealand  together  have  a 
population  less  than  Baltimore,  Boston,  Buffalo,  Cin' 


A    COUNTRY    WITHOUT    STRIKES     121 

cinnati,  Cleveland,  Detroit,  Los  Angeles,  Milwau- 
kee, Minneapolis,  New  Orleans,  Newark,  N.  J., 
Pittsburgh  or  St.  Louis,  yet  more  than  thirty  per 
cent,  of  the  people  of  New  Zealand  live  in  the  prin- 
cipal cities. 

Mere  bigness  docs  not  prove  wholly  that  the 
United  States  is  not  adapted  to  the  success  of  an 
institution  which  works  well  in  smaller  states.  It 
does,  however,  raise  a  strong  presumption  of  doubt 
and  particularly  when  the  character  or  fabric  of 
that  bigness  is  a  factor  of  serious  consequence.  This, 
it  will  appear,  is  the  case. 

It  is  obvious  that  New  Zealand  has  no  great  and 
complex  problems  of  city  government,  no  social 
problem  of  congested  population  with  tenements  and 
disease,  no  industrial  problem  of  overcrowded  trades 
and  unemployment  such  as  a  country  just  emerged 
from  an  epoch  of  industrial  over-developm.ent  is 
likely  to  have  on  its  hands.  New  Zealand  has  no 
highly  specialized  industries,  no  finely  spun  division 
of  labor,  and  therefore,  no  glaring  instances  of  eco- 
nomic dependence  of  the  worker  upon  machines. 
Industrial  development  in  New  Zealand  is  far  be- 
hind that  in  the  United  States. 

It  is  noteworthy  that  New  Zealand  has  no  great 


122         INDUSTRIAL    ARBITRATION 

race  problem  like  that  of  the  United  States.  |  The 
Dominion  immigration  laws  have  been  very  strict 
for  many  years.  In  1909  a  rigid  educational  test 
was  enacted.  This  act  prohibits  the  landing  of 
idiots,  persons  suffering  from  a  dangerous  or  loath- 
some disease,  certain  convicted  criminals  and  any 
person  other  than  of  British  birth  who  fails  to  write 
out  and  sign  in  any  European  language  a  prescribed 
form  of  application.  The  country  has  been  par- 
ticularly strict  in  its  regulation  of  Chinese  immi- 
gration. The  Chinese  population  numbered  only 
2,630  in  191 1,  more  than  1,000  less  than  lived  in 
the  Dominion  in  1896,  when  a  law  was  passed  lay- 
ing a  poll  tax  of  $486.60  on  each  Chinaman  who 
came  to  the  island.  The  character  of  the  immigra- 
tion is  indicated  somewhat  by  the  naturalizations 
during  the  last  twenty-seven  years.  In  that  period, 
about  7,500  persons  were  naturalized,  of  whom  over 
4,500  were  from  Germany,  Sweden,  Norway,  Den- 
mark and  the  Netherlands,  367  from  Russia,  181 
from  France,  47  from  Belgium,  236  from  Switzer- 
land, 126  from  the  United  States,  292  from  Italy 
and  Sicily,  'j'^  from  Portugal,  more  than  1,000  from 
Austria-Hungary,  "]"]  from  Greece  and  418  from 
China.     Two  hundred  and  thirty-seven  were  from 


A    COUNTRY    WITHOUT    STRIKES     123 

other  countries.  Those  races  which,  for  the  past 
quarter  century,  have  flocked  to  the  American 
shores,  are  represented  by  inconsiderable  numbers 
in  the  New  Zealand  immigration. 

In  1910,  not  only  were  there  living  in  the  United 
States  nearly  nineteen  million  people  born  of  for- 
eign parents,  but  over  six  and  one-half  million  were 
foreign  born.  In  addition  to  the  foreign  born  and 
those  born  of  foreign  parents,  there  were  about  ten 
million  negroes  in  the  United  States.  This  vast 
foreign-born  population,  recruited  from  every  coun- 
try in  the  globe  and  lately  from  countries  with  a  low 
standard  of  living,  has  thrust  upon  the  United  States 
such  an  industrial  problem  as  New  Zealand  has 
never  known  and  probably  never  will  know.  There, 
a  large  majority  of  the  workers  are  English  or  of 
English  descent,  and  a  common  standard  of  living 
prevails.  What  is  flesh  for  one  is  also  flesh  for 
another.  There,  the  wage  question  is  not  complex 
because  it  is  possible  to  determine  very  nearly  what 
is  a  living  wage  for  all  the  people.  No  hordes  of  a 
million  a  year  are  flocking  to  the  ports  of  New  Zea- 
land and  there  are  no  cities  there  like  Gary,  Indiana, 
for  instance,  where  more  than  forty  languages  are 
spoken  by  the  working  people.     Diversity  of  races 


124        INDUSTRIAL    ARBITRATION 

and  the  competition  of  one  race  with  another  makes 
the  wage  question  and  the  question  of  working  con- 
ditions an  intricate  problem  in  the  United  States. 

It  is  significant  that  industry  is  much  vaster  in 
the  United  States  than  in  New  Zealand.  New  Zea- 
land has  less  than  seventy-five  thousand  persons  en- 
gaged in  the  operation  of  factories,  while  the  United 
States  has  nearly  eight  million.  Less  than  four 
thousand  persons  are  employed  in  the  New  Zealand 
coal  mines,  while  the  United  States  reported  in  1909 
over  a  million  workers  engaged  in  that  industry. 
As  compared  to  a  little  over  two  million  tons  of 
coal  mined  in  New  Zealand  In  19 10,  the  United 
States  mined  nearly  five  hundred  million  tons  in 
1908. 

But  the  character  of  industry  in  this  country  is 
also  different  and  it  is  indicated  by  the  value  of 
leading  products  for  a  single  year.  Agriculture 
dominates  the  industrial  life  of  New  Zealand,  where 
in  191 1  the  value  of  agricultural  produce  amounted 
to  $1 13,000,000,  the  value  of  mine  products  to  $18,- 
000,000  and  the  value  of  manufactured  products  to 
$35,000,000.  In  a  single  year  the  agricultural  prod- 
ucts amounted  to  more  than  twice  the  mining  and 
manufactured  products. 


A    COUNTRY    WITHOUT    STRIKES     125 

In  the  United  States  for  1909,  the  agricultural 
crops  amounted  to  $5,487,000,000,  mining  products 
to  $1,238,410,322  and  manufactured  products  to 
$20,672,052,000.  Manufactured  products,  there- 
fore, amounted  to  more  than  three  times  the  total 
value  of  agricultural  crops  and  mining  products. 
From  the  fact  that  industrial  problems  are  most 
acute  in  the  factory  and  the  mine,  it  is  apparent  that 
industrial  peace  will  be  far  more  difficult  to  attain 
in  this  country. 

One  important  reason  why  compulsory  arbitration 
should  succeed  in  New  Zealand  and  fail  elsewhere 
is  the  strong  organization  of  New  Zealand  working 
people.  These  organizations  have  a  high  standing 
because  of  wise  and  honorable  leadership  and  be- 
cause they  have  flourished  without  particular  oppo- 
sition from  industrial  leaders.  Not  only  are  the 
workers  organized  but  the  employers  also.  In  1910, 
118  unions  of  employers,  with  a  membership  of 
4,262,  and  308  unions  of  workers  with  a  member- 
ship of  57,000  were  registered  under  the  arbitra- 
tion act.  This  was  an  increase  of  75  employers' 
unions  and  a  membership  of  3,246  employers  and 
an  Increase  of  117  workers'  unions  and  a  member- 
ship of  39,102  workers  over   1900.     There  were 


126        INDUSTRIAL    ARBITRATION 

about  60,000  members  of  workers'  unions  registered 
under  the  act  In  191 3  and  about  10,000  members  of 
workers'  unions  not  so  registered. 

The  membership  of  the  workers'  unions  by  trade 
groups  in  1910  was  as  follows:  agriculture,  4,142; 
building,  6,857;  clothing  and  textile,  4,717;  engi- 
neering and  ship  building,  3,383 ;  food  supply, 
7,357;  mining,  4,689;  printing,  1,163;  transporta- 
tion, 17,104;  other  trades,  7,679.  In  the  United 
States,  the  19 10  census  showed  approximately  38,- 
000,000  people  employed  In  various  pursuits.  Ag- 
riculture claimed  about  13,000,000,  trade  and  trans- 
portation nearly  6,000,000,  manufacturing  and 
mechanical  pursuits  about  10,000,000,  domestic  and 
personal  service  5,500,000  and  professional  service 
1,750,000. 

From  the  fact  that  trade  unionism  was  an  estab- 
lished fact  In  New  Zealand  when  the  conciliation 
and  arbitration  laws  were  first  passed  and  that  these 
laws  were  prefaced  on  the  theory  that  the  workers 
and  the  employers  were  fully  organized,  New  Zea- 
land no  longer  has  to  determine  such  a  question  as 
whether  a  union  shall  or  shall  not  be  recognized. 
This  question,  the  cause  of  approximately  one-fifth 
the  industrial  disputes  In  the  United  States,  was 
settled  In  New  Zealand  long  before  compulsory  ar- 


A    COUNTRY    WITHOUT    STRIKES     127 

bitration  became  a  fact.  The  Dominion  of  New  Zea- 
land has  been  foremost  in  the  enactment  of  social 
legislation  in  behalf  of  the  working  people.  Before 
the  present  arbitration  laws  were  passed,  New  Zea- 
land practically  had  eliminated  its  sweated  indus- 
tries. The  government  has  been  paternalistic  from 
the  first,  and  very  probably  the  early  necessity  of 
solving  a  perplexing  land  problem  crystallized  the 
tendency  in  this  direction.  The  comfort  and  well 
being  of  its  workers  have  always  been  uppermost 
among  the  fixed  policies  of  the  country. 

Government  ownership  and  operation  of  rail- 
roads, telephones,  telegraphs,  coal  mines,  life,  fire 
and  accident  insurance,  and  post-office  savings  banks 
are  among  the  best  known  instances  of  the  socializ- 
ing tendency  of  the  New  Zealand  government. 

New  Zealand's  railway  department  employs  about 
10,000  hands  and  the  postal  department  about  5,000. 
The  deposits  in  the  post-office  savings  bank  of  New 
Zealand  more  than  doubled  from  1900  to  19 10. 
These  banks  had  380,585  open  accounts  at  the  close 
of  1910  as  compared  with  212,436  at  the  close  of 
1900.  The  average  amount  standing  to  the  credit 
of  each  open  account  in  the  post-office  savings  bank 
in  1910  was  thirty-seven  pounds,  one  shilling,  three 
pence,  as  compared  to  twenty-nine  pounds,  seven- 


128         INDUSTRIAL    ARBITRATION 

teen  shillings,  ten  pence  In  1900.  Deposits  in  pri- 
vate banks  and  in  building  and  investment  societies 
also  have  greatly  increased  during  late  years. 

There  is  an  imposing  body  of  laws,  strictly  en- 
forced in  New  Zealand,  regulating  the  hours  of 
labor  of  adults  and  young  persons,  wages,  sanitary 
and  hygienic  conditions,  and  these  laws  have  set- 
tled permanently  in  New  Zealand  problems  with 
which  boards  of  arbitration  still  have  to  contend 
in  this  country  and  which  remain  as  the  greatest 
obstacles  to  a  satisfactory  understanding  between 
employers  and  work  people. 

Among  these  laws  are  the  old  age  pensions  act 
of  1899,  the  factories  act,  the  shops  and  offices  act 
and  the  workmen's  compensation  act  of  1908,  the 
workers'  dwelling  act  of  1910  and  the  shipping  act 
of  1909. 

The  old  age  pensions  act  was  passed  subsequent 
to  New  Zealand's  effort  to  regulate  wages  by  state 
agency.  Just  as  soon  as  wages  were  increased  and 
hours  shortened,  it  was  necessary  to  make  provision 
for  inferior  workmen  and  to  relieve  employers  of 
having  to  pay  maximum  wages  for  inferior  service. 
Old  age  pensions  were  provided  to  relieve  the  em- 
ployer of  this  burden  and  the  aged  workman  of  dis- 
tress during  his  years  of  reduced  efficiency. 


A    COUNTRY    WITHOUT    STRIKES     129 

Since  the  old  age  pensions  act  went  into  effect 
in  1899,  New  Zealand  has  paid  out  approximately 
fifteen  million  dollars  in  pensions.  There  were  over 
fifteen  thousand  pensioners  in  191 1  who  received 
from  the  state  nearly  two  million  dollars.  The  max- 
imum pension  is  now  one  hundred  twenty-six  dollars 
and  ninety-six  cents  a  year. 

The  New  Zealand  factories  act  of  1908  was  a 
consolidation  of  former  legislation.  It  was  amended 
In  1910.  The  eight-and-one-quarter-hour  day  and 
the  forty-five-hour  week  with  restrictive  overtime 
which  must  be  paid  for  is  required  for  women  and 
boys,  except  In  woolen  mills,  where  forty-eight 
hours  a  week  are  allowed.  If  men  are  employed 
over  eight  and  three-quarters  hours  a  day  or  forty- 
eight  hours  a  week,  overtime  rates  must  be  paid  and 
the  amount  of  overtime  Is  limited.  Hours  for  men 
are  subject  to  awards  of  the  arbitration  court. 
Wages  of  young  persons,  statutory  holidays,  regu- 
lated hours  of  overtime,  sanitation  and  hygiene  of 
factories,  provision  for  fire-escapes  and  drinking 
water  are  carefully  set  out  in  this  act.  Saturday 
Is  a  statutory  holiday.  Restrictions  as  to  working 
hours  In  laundries,  by  an  amendment  of  19 10,  were 
extended  to  proprietors  as  well  as  employees.  In 
order  to  prevent  unfair  competition  from  the  Chi- 


130         INDUSTRIAL    ARBITRATION 

nese.  All  factories  are  subject  to  rigid  inspection. 
In  the  United  States,  the  eight-hour  day  is  far  from 
universal,  and  prevails  only  in  highly  organized 
trades  and  in  work  done  for  the  federal  government 
and  the  several  states. 

The  shops  and  offices  act  of  1 908  is  a  consolida- 
tion of  legislation,  the  first  of  which  was  enacted 
in  1892.  The  consolidated  act  regulates  the  hours 
of  assistants  in  shops,  which  must  not  exceed  fifty- 
two  hours  a  week  or  more  than  nine  hours  a  day, 
with  the  exception  of  eleven  hours  on  one  day  and 
overtime  under  the  warrant  from  an  inspector. 
Overtime  must  be  paid  for  and  the  shop  must  be 
kept  clean  and  well  ventilated.  A  weekly  half  hol- 
iday is  compulsoiy.  Minimum  wages  for  young  per- 
sons of  five  shillings  a  week  with  an  annual  increase 
of  three  shillings  a  week  until  one  pound  is  reached 
are  provided  in  the  act.  An  amendment  of  1910 
puts  all  the  assistants  employed  in  hotels  and  res- 
taurants under  special  provisions  as  to  hours  and 
working  conditions. 

A  workmen's  compensation  act  was  passed  in 
1908  and  a  government  insurance  act  of  the  same 
year  provides  for  insuring  employers  against  risk. 
The  compensation  act  allows  compensation  up  to 
$2,430  in  case  of  death  and  in  case  of  total  or  par- 


A    COUNTRY    WITHOUT    STRIKES     131 

tial  incapacity,  the  compensation  payable  in  half 
wages  with  a  limit  of  $2,430  or  six  years'  payment. 

In  1908,  several  statutes  were  consolidated  into 
the  wages  protection  and  contractors'  liens  act.  It 
insures  the  regular  payment  of  wages;  permits  at- 
tachments of  moneys  in  the  hands  of  employers 
when  wages  are  in  arrears;  prohibits  attachment  of 
workers'  wages,  except  in  the  case  of  any  surplus 
exceeding  nine  dollars  and  seventy-two  cents  a 
week;  prohibits  payment  for  wages  being  made  in 
anything  except  money  or  by  approved  check;  en- 
titles a  contractor  or  worker  to  a  lien  on  the  lands 
or  chattels  of  his  employer  and  permits  no  deduc- 
tion from  the  workers'  wages  for  purposes  of  in- 
surance against  compensation  for  accident. 

Proper  sleeping  and  dining  accommodations,  ven- 
tilation and  sanitation  must  be  provided  for  wan- 
dering workmen  utilized  as  wool  shearers  and  for 
farm  assistants  employed  the  year  round.  Machin- 
ery is  subject  to  rigid  inspection,  as  well  as  scaffolds 
and  gears  used  in  the  erection  or  repair  of  buildings. 

Under  the  workers'  dwelling  act  of  1910,  Crown 
land  was  set  apart  and  buildings  erected  for  work- 
ers may  be  purchased  by  a  deposit  of  forty-eight 
dollars  and  sixty  cents  and  the  payment  of  the  bal- 
ance in  instalments  ranging  over  twenty-five  and 


132        INDUSTRIAL    ARBITRATION 

one-half  years.  On  March  31,  191 1,  one  hundred 
twenty-six  workers'  dwellings  had  been  erected  un- 
der the  act.  The  Superintendent  of  the  State  Guar- 
anteed Advances  office  may  lend  money  for  the  pur- 
pose of  purchasing  or  erecting  a  dwelling  to  any 
person  employed  In  manual  or  clerical  work  not  in 
receipt  of  an  income  of  more  than  nine  hundred 
seventy-two  dollars  j^er  annum.  Advances  amount- 
ing to  seven  and  one-half  million  dollars  had  been 
made  under  the  system  on  March  31,  191 1,  four 
years  after  its  institution. 

Shipping  is  under  strict  regulation  and  seamen 
are  guaranteed  adequate  protection  under  acts  of 
1908  and  1909. 

Wages  and  the  cost  of  living  are  important  fac- 
tors in  the  welfare  of  working  people.  Wages  do 
not  seem  so  high  in  New  Zealand  as  in  the  United 
States,  but  working  conditions  are  far  more  whole- 
some and  employment  is  steady.  From  1895  to 
1907,  there  was  an  increase  of  nineteen  and  seven- 
tenths  per  cent,  in  wages  in  industrial  occupations 
and  for  the  same  period  an  increase  of  twenty-nine 
and  three-tenths  per  cent,  in  wages  paid  to  agricul- 
tural laborers.  The  attorney  general,  however,  is 
responsible  for  a  statement  made  in  1908  that  the 
cost  of  living  for  the  preceding  twelve  years  had  in- 


A    COUNTRY    WITHOUT    STRIKES     133 

creased  seven-hundredths  per  cent,  faster  than 
wages. 

For  nearly  a  decade,  the  United  States  has  heard 
the  hue  and  cry  raised  against  the  high  cost  of  liv- 
ing. It  has  been  shown  repeatedly  that  wages,  al- 
though on  the  rise,  have  not  kept  pace  with  the  cost 
of  living.  The  difference  of  seven-hundredths  per 
cent,  in  New  Zealand  is  not  a  considerable  hardship 
as  compared  to  the  most  conservative  estimates  of 
the  widening  chasm  between  wages  and  living  in 
this  country. 

The  city  of  Auckland  and  vicinity  may  be  taken 
as  typical  of  wages  paid  in  New  Zealand,  although 
they  do  vary  somewhat  throughout  the  Dominion. 

For  1 9 10  farm  laborers  are  rated  at  from  $4.86 
to  $8.50  per  week  with  board,  harvesters  receiving 
the  highest  wage  or  from  $6.08  to  $8.50.  Without 
board  farm  laborers  received  from  $1.70  to  $2.43 
per  day  and  harvest  hands  $.24  3-10  per  hour. 
Among  the  artisans,  masons  were  paid  $2.92  per 
day  without  board,  plasterers  and  bricklayers  as 
high  as  $3.40  and  as  low  as  $2.92.  Cabinet  makers, 
carpenters,  boilermakers,  blacksmiths,  tinsmiths, 
wheelwrights,  shipwrights,  plumbers,  painters,  sad- 
dlers, shoemakers,  coopers  and  watchmakers  re- 
ceived from  $2.02,  a  minimum  in  the  case  of  watch- 


134         INDUSTRIAL    ARBITRATION 

makers,  to  $2.75,  a  maximum  in  the  case  of  plumb- 
ers. General  laborers  received  from  $1.94  to  $2.43 
per  day  without  board.  Tailors  received  $2.02  to 
$2.19.  Compositors  were  paid  from  $11.66  to 
$15.80  per  week  in  Auckland  but  the  maximum  ran 
as  high  as  $19.44  a  week  in  Hawke's  Bay.  Saw- 
mill hands  received  all  the  way  from  a  minimum 
of  $10.21  at  Auckland  to  a  maximum  of  $17.50  per 
week  in  Westland.  Married  couples  without  fam- 
ilies received  as  servants  all  the  way  from  $340.62 
to  $486.60  per  year  throughout  the  Dominion.  This 
included  board.  Cooks  were  paid  as  low  as  $9.13 
per  week  and  as  high  as  $12.15;  laundresses,  with 
board,  by  the  week  from  $3.65  to  $7.29;  house  serv- 
ants from  $2.43  to  $4.86  per  week.  House  maids 
were  paid  slightly  higher.  Needlewomen  were  paid 
from  $3.03  to  $7.29  per  week  without  board. 

Drunkenness  and  drinking  can  not  be  overlooked 
as  an  important  cause  of  discontent  among  work- 
ing people.  The  factory  saloon  especially  may  be 
looked  upon  as  one  of  their  greatest  curses.  Not 
only  does  excessive  drinking  breed  discontent  but 
expenditures  for  liquor  impoverish  the  home  of  the 
working  man  and  cause  great  domestic  distress. 

The  year   1910  may  be  taken  as  typical  of  the 


A    COUNTRY    WITHOUT    STRIKES     135 

amount  of  drinking  in  the  Dominion  of  New  Zea- 
land and  the  United  States.  In  that  year,  New 
Zealand,  exclusive  of  Maoris,  consumed  an  average 
of  10.632  gallons  of  spirits,  wine  and  malt  liquor, 
per  capita.  In  the  same  year,  the  people  of  the 
United  States  consumed  more  than  twice  as  much, 
or  22.7  gallons  per  capita.  While  the  people  of 
this  country  drank  20.66  gallons  of  beer  per  capita 
in  1910  the  people  of  New  Zealand  drank  only  9.741 
gallons.  But  Americans  also  drank  more  distilled 
spirits  in  1 9 10,  that  consumed  here  being  1. 46  gal- 
lons and  that  consumed  in  New  Zealand  being  about 
half  as  much,  or  .737  gallons.  New  Zealand  con- 
sumed less  than  one-fourth  as  much  wine  per  cap- 
ita, the  figures  being  .154  gallons  for  that  country 
and  .6^]  gallons  per  capita  for  the  United  States.       j 

Per  capita  consumption  of  liquor  has  increased 
alarmingly  in  this  country.  Between  i860  and  1910, 
it  increased  from  six  gallons  per  capita  to  twenty- 
two  gallons.  The  consumption  of  all  liquors,  how- 
ever, is  slightly  on  the  increase  in  New  Zealand. 
It  rose  thirty-three-hundredths  gallons  per  capita 
between  1900  and  19 10. 

The  people  of  the  United  States  consume  nearly 
twice  as  much  tobacco  per  capita  as  the  people  of 


136         INDUSTRIAL    ARBITRATION 

New  Zealand.  The  per  capita  consumption  here  is 
four  and  forty-hundredths  pounds  and  two  and  six- 
ty-nine-hundredths  jijounds  in   New  Zealand. 

Careful  precaution  against  pauperism,  unemploy- 
ment and  want  by  safeguarding  the  personal  wel- 
fare of  working  men  and  women  has  made  the 
people  of  New  Zealand  the  most  contented  of  any 
people  on  earth.  This  contentment,  partially,  per- 
haps, due  to  the  wholesome  climate,  is  reflected  in 
the  death  rate  of  the  country,  given  as  9.22  for 
each  1,000  population  in  1908.  In  the  same  year, 
the  death  rate  of  other  countries  was  as  follows : 
England  and  Wales,  14.7;  Scotland,  16.1;  Ireland, 
17.6;  Denmark,  14.5;  Norway,  14.3;  Sweden,  14.9; 
Austria,  22.3;  Hungary,  24.8;  Switzerland,  16.2; 
German  Empire,  18.  i;  Netherlands,  15.0;  France, 
19.0,  and  Italy,  22.6.  The  death  rate  for  all  classes 
and  all  ages,  according  to  the  census  of  1900  in  the 
United  States  was  17  for  each  1,000  population, 
nearly  twice  that  of  New  Zealand. 

The  expectation  of  life  is  greater  in  New  Zealand 
than  anywhere  on  the  globe.  At  ten  years  of  age, 
the  average  duration  of  life  in  New  Zealand  is 
53.094  years  while  it  is  only  48.72  years  in  this 
country,  according  to  the  American  Experience  Ta- 
ble of  Mortality.     At  twenty,  the  expectancy  of  life 


A    COUNTRY    WITHOUT    STRIKES     137 

is  44.551  years  in  New  Zealand  and  42.20  in  the 
United  States.  At  thirty-five,  it  is  32.829  in  New 
Zealand  and  31.78  in  the  United  States.  At  fifty, 
it  is  21.636  in  New  Zealand  and  20.91  in  the  United 
States.  At  seventy-five,  It  is  7.16  in  New  Zealand 
and  6.2^  in  the  United  States. 

When  we  consider  the  great  length  to  which  New 
Zealand  has  gone  in  preparing  the  way  for  a  happy 
and  contented  body  of  work  people,  we  do  not  much 
wonder  that  compulsory  arbitration  has  proved  suc- 
cessful there.  We  do  not  wonder  that  the  public, 
acting  through  the  regularly  constituted  instru- 
ments of  government,  and  after  having  proceeded 
to  extreme  lengths  in  making  working  conditions 
wholesome.  Is  able  to  maintain  the  superiority  of 
the  public  interest  In  more  or  less  trivial  contro- 
versies between  employer  and  employee.  We  do 
not  wonder  that  strikes  and  lockouts  can  be  pre- 
vented in  that  country.  We  have  no  cause  to  mar- 
vel that  compulsory  industrial  conciliation  and  arbi- 
tration is  successful.  We  should  be  surprised  were 
it  not  successful. 

From  the  earliest  times.  New  Zealand  depended 
almost  altogether  upon  water  transportation  for 
communication  between  various  parts  of  the  two 
islands.      In    1892,   there   occurred  the  organized 


138         INDUSTRIAL    ARBITRATION 

strikes  of  the  workers  in  Australian  colonies,  in 
which  the  Seamen's  Union  took  a  leading  part. 
Sympathy  for  the  Australian  cause  practically  re- 
sulted in  a  general  strike  of  the  New  Zealand  Sea- 
men's Union,  and  trade  was  badly  disorganized.  As 
a  result  of  this  strike,  the  New  Zealand  arbitration 
law  was  passed  in  1893  and  became  effective  in 
1894. 

The  minister  of  labor  was  designated  to  admin- 
ister the  act.  It  provided  for  local  boards  of  con- 
ciliation in  "industrial  disputes"  and  a  general  court 
of  arbitration.  District  boards  were  composed  of 
three  or  five  members,  the  chairman  being  chosen 
by  the  representative  members  from  the  working 
and  employing  classes  who  elected  their  members. 
They  were  appointed  by  the  governor  from  nomina- 
tions made  by  registered  trade  unions  and  registered 
employers'  associations.  The  president  of  the  court 
was  chosen  directly  by  the  governor  from  the  judges 
of  the  Supreme  Court.  Either  party  before  a  hear- 
ing had  begun  might  require  a  dispute  to  be  re- 
ferred from  the  district  boards  of  conciliation  to  the 
court  of  arbitration.  Once  a  case  was  referred  for 
conciliation,  it  was  unlawful  to  call  a  strike  or  lock- 
out. Agreements  might  be  made  between  the  par- 
ties,   but   their    enforcement    was    compulsory,    the 


A    COUNTRY    WITHOUT    STRIKES     139" 

same  as  an  award  by  the  arbitration  court.  Full 
power  to  compel  the  presence  and  testimony  of  wit- 
nesses was  given  the  district  boards  of  conciliation 
and  the  arbitration  court.  Every  industrial  dispute 
except  indictable  offenses  came  under  the  operation 
of  the  law,  and  since  the  act  was  based  upon  a  free 
recognition  of  trade  unionism,  conciliation  boards 
and  the  court  were  required  to  give  preference  to 
the  members  of  trade  unions. 

While  this  act  was  regarded  as  a  compulsory  ar- 
bitration statute,  there  was  no  penalty  for  failing 
to  register,  and  unregistered  organizations  did  not 
come  under  the  act.  Awards  were  automatically 
extended  to  whole  industries  by  the  act  of  1900, 
the  amendments  of  1901  and  1903  and  an  interpre- 
tation of  the  court  in  1904. 

Between  1896  and  1903,  two  hundred  thirteen 
employers  were  charged  with  violating  awards  and 
one  hundred  seventy-one  were  convicted.  During 
the  same  period,  four  employees  were  charged  with 
similar  offenses  and  three  convictions  were  obtained. 

The  industrial  conciliation  and  arbitration  acts 
were  consolidated  in  1908  and  amendments  were 
added  in  1908  and  1910.  The  New  Zealand  Official 
Y ear-Book  for  191 1  gives  a  summary  of  thq  main 
provisions, 


I40         INDUSTRIAL    ARBITRATION 

Under  the  act  the  Dominion  of  New  Zealand  is 
divided  into  eight  industrial  districts.  Any  society 
consisting  of  not  less  than  three  persons  in  the  case 
of  employers  or  fifteen  in  the  case  of  workers  in 
any  specified  industry  or  industries  in  an  industrial 
district  may  be  registered  as  an  industrial  union. 
Any  incorporated  company  may  be  registered  as 
an  industrial  union  of  employers.  Any  two  or  more 
industrial  unions  of  employers  or  employees  may 
form  an  industrial  association  and  register  under 
the  act.  Industrial  associations  are  formed  usually 
for  the  whole  or  greater  part  of  New  Zealand,  com- 
prising unions  registered  in  the  various  industries. 
Registration  enables  any  union  or  association  to  en- 
ter into  and  file  an  industrial  agreement  setting  out 
the  conditions  of  employment.  Although  this  agree- 
ment is  limited  to  a  period  of  three  years,  it  remains 
in  force  until  superseded  by  another  agreement  or 
an  award  of  the  court  of  arbitration,  except  where 
the  registration  of  the  union  of  workers  concerned 
is  canceled.  In  the  event  of  a  failure  to  reach  an 
industrial  agreement,  registration  permits  the  par- 
ties to  bring  an  industrial  dispute  before  the  council 
of  conciliation  and,  if  necessary,  before  the  court  of 
arbitration. 

A  council  of  conciliation  has  no  compulsory  pow- 


A    COUNTRY    WITHOUT    STRIKES     141 

ers  but  merely  makes  an  endeavor  to  bring  about 
a  settlement  which,  if  made,  is  filed  as  an  industrial 
agreement.  If  no  settlement  is  reached,  the  council 
of  conciliation  is  required  to  refer  the  dispute  to 
the  board  of  arbitration,  which,  after  hearing  the 
parties,  may  make  an  award.  Such  awards,  like 
industrial  agreements,  are  binding  on  all  parties 
concerned.  Unless  otherwise  provided,  the  award 
applies  to  the  industrial  district  in  which  it  is  made. 
Awards  are  limited  to  a  period  of  three  years  but 
remain  in  force  until  superseded  by  another  award 
or  by  a  subsequent  agreement,  except  where  regis- 
tration of  the  union  of  workers  has  been  canceled. 

It  is  now  impossible  to  refer  a  dispute  directly 
to  the  court  of  arbitration  without  waiting  for  a 
hearing  by  the  board  of  conciliation. 

Four  conciliation  commissioners,  holding  office 
for  three  years,  may  be  appointed  and  three  were 
appointed  in  191 1,  and  each  of  the  eight  industrial 
districts  was  placed  under  the  jurisdiction  of  the 
commissioner. 

When  a  dispute  arises,  the  commissioner  is  noti- 
fied and  recommendations  are  received  for  one,  two 
or  three  assessors  to  act  as  representatives  on  the 
council  of  conciliation.  Councils  of  conciliation  are 
set  up  after  notice  to  the  other  party  by  the  com- 


142         INDUSTRIAL    ARBITRATION 

missioner  and  recommendations  by  them  of  an  equal 
number  of  assessors. 

The  court  of  arbitration  is  appointed  for  all  New 
Zealand  and  consists  of  three  members,  one  of 
whom,  the  permanent  judge  of  the  court,  possesses 
the  same  powers  and  privileges  as  a  judge  of  the 
Supreme  Court,  The  other  judges  are  nominated, 
one  by  the  various  unions  of  employers  and  one 
by  the  unions  of  workers  and  their  appointments 
determined  by  a  majority  of  the  unions  on  each 
side  respectively.  They  hold  office  for  three  years 
and  are  eligible  to  reappointment.  The  judge  and 
one  member  constitute  a  quorum.  There  is  no  ap- 
peal from  the  decision  of  the  court,  except  in  cases 
beyond  the  scope  of  the  act. 

Strikes  and  lockouts  are  Illegal  only  if  parties 
concerned  are  bound  by  an  award  or  agreement. 
Workers  are  subject  to  a  penalty  of  forty-eight  dol- 
lars and  sixty  cents  and  employers  to  a  penalty  of 
two  thousand  four  hundred  thirty  dollars  for  strikes 
and  lockouts.  Gifts  of  money  are  deemed  to  be  aid- 
ing or  abetting  a  strike  or  lockout  and  these  are 
punishable  by  a  fine.  In  certain  Industries  affecting 
the  supply  of  water,  milk,  meat,  coal,  gas  or  elec- 
tricity,-or  the  operation  of  a  ferry,  tramway  or  rail- 
way, fourteen  days*  notice  must  be  given  within  one 


A    COUNTRY    WITHOUT    STRIKES     143 

month  of  an  intended  strike  or  lockout,  whether  sub- 
ject to  an  award  or  agreement,  or  not.  Strikes  and 
lockouts  are  forbidden  during  the  hearing  of  a  dis- 
pute by  the  council  or  court  of  arbitration. 

Breaches  of  awards  and  industrial  agreements  are 
punishable  by  fines  of  four  hundred  eighty-six  dol- 
lars against  a  union,  association  or  employer,  and 
twenty-four  dollars  and  thirty  cents  against  a 
worker. 

Since  the  passage  of  the  New  Zealand  act  in  1893 
to  the  thirty-first  of  March,  191 1,  there  was  a  total 
of  forty-two  strikes,  of  which  twelve  were  of  the 
slaughtermen.  These  twelve  strikes  occurred  in 
1907.  Of  the  twelve  slaughtermen  strikes,  six  were 
within  the  scope  of  the  act  and  six  outside  it.  Of 
the  forty-two  strikes  from  1894  to  191 1,  twenty  were 
within  the  scope  of  the  act  and  twenty-two  outside 
the  scope  of  the  act.  In  1909,  there  were  four  strikes 
In  New  Zealand,  in  1910,  eleven,  and  in  191 1,  up  to 
March  31,  two  strikes. 

The  New  Zealand  Y ear-Book  for  191 1  is  author- 
ity for  the  statement  that  the  capital  value  of  land 
almost  trebled  from  1878  to  191 1.  The  year-book 
for  1908  shows  that  the  hands  employed  for  the 
period  between  1901  and  1905  increased  nearly  one- 
fourth,  and  that  the  output  increased  about  one- 


144         INDUSTRIAL    ARBITRATIOxN 

third.  Bank  deposits  increased  from  nineteen  and 
ninety -two-hundredths  pounds  per  head  in  1890  to 
twenty-live  and  fifty-nine-hundredths  pounds  in 
1907.  Imports  of  boots  and  shoes  more  than  doub- 
led from  1895  to  1 9 10.  Woolen  imports  almost 
doubled  from  1895  to  1905  and  imported  machinery 
more  than  doubled  from  1895  ^o  1910. 

Between  1895  and  1905,  manufactures  of  boots 
and  shoes  increased  thirty-nine  per  cent. ;  woolens, 
thirty-one  per  cent. ;  machinery  and  implements, 
ninety-five  per  cent.  But  imports  continue  to  show 
a  notable  increase  over  domestic  manufactures. 

Harris  Weinstock  repudiates  criticisms  of  the  ap- 
parently abnormal  increase  in  the  debt  of  New  Zea- 
land since  the  passage  of  the  compulsory  arbitration 
act  of  1894.^  These  critics,  he  says,  call  attention 
to  the  fact  that  in  1894  the  Dominion  debt  was  £38,- 
000,000,  or  a  per  capita  debt  of  $278.57,  whereas 
in  1908  the  debt  of  the  Dominion  had  grown  to  £66,- 
000,000,  or  a  per  capita  debt  of  $320.00. 

"I  took  pains,"  he  says,  "to  have  these  statements 
analyzed,  with  the  following  results :  I  found  that 
in  1894,  out  of  the  debt  of  £38,000,000,  there  was 
invested  in  productive  works  £17,162,000,  leaving  a 
non-productive  debt  of  £21,838,896  ($105,914,300) 
on  which  the  people  had  to  pay  interest,  whereas 

^  Special   Labor   Report   on   Strikes   and   Lockouts,   Harris 
Weinstock,  p.  139. 


A    COUNTRY    WITHOUT    STRIKES     145 

in  1908  investment  in  productive  works  aggre- 
gated £47,416,743,  leaving  a  non-productive  debt 
of  £19,047,154  ($92,378,697),  so  that  as  a  matter 
of  fact,  the  debt  on  which  the  people  had  to  pay 
interest  had,  in  the  intervening  years,  diminished 
by  $I3>535,603.  The  productive  investments  yield 
the  Dominion  an  income  of  from  3  to  7^  per  cent., 
and  go  a  good  way  toward  lightening  the  tax  bur- 
dens in  other  directions." 

Perhaps  nothing  so  completely  demonstrates  the 
strength  of  the  New  Zealand  system  of  arbitration 
and  its  underlying  basis  of  social  justice  as  the 
Dominion's  experiences  with  syndicalism  and  the  ef- 
fort of  the  syndicalists  to  carry  out  a  general  strike 
during  the  latter  part  of  191 1,  191 2  and  191 3.  The 
effort  was  a  complete  failure,  and  although  more 
than  fifty  strikes  were  called  during  the  period,  all 
of  them  were  lost;  direct  action  was  thoroughly 
discredited;  the  arbitration  system  and  the  govern- 
ment which  stood  sponsor  for  it  emerged  from  the 
contest  with  added  glory. 

In  December,  191 3,  a  labor  disputes  investigation 
act,  similar  to  the  Canadian  statute,  was  made  to 
apply  to  workers'  unions  not  registered  under  the 
arbitration  act. 


CHAPTER  VI 

AUSTRALIAN  EXPERIMENTS 

THE  commonwealth  of  Australia  has  been 
somewhat  more  conservative  in  its  paternal- 
istic consideration  of  the  working  man's  welfare 
than  New  Zealand,  yet  the  six  states  of  the  common- 
wealth and  the  commonwealth  government  have 
proceeded  much  further  in  this  direction  than  any 
other  country  except  New  Zealand.  Australia  has 
experimented  with  many  different  forms  of  concil- 
iation and  arbitration. 

Victoria,  having  unsuccessfully  tried  out  a  system, 
beginning  in  1896,  modeled  after  the  English  coun- 
cils of  conciliation  act  of  1867,  introduced  a  system 
of  wages  boards  in  1896.  This  system  still  prevails. 
New  South  Wales,  having  failed  to  accomplish  any- 
thing under  a  voluntary  trades  dispute  conciliation 
and  arbitration  act  of  1891,  in  1899  conferred  cer- 
tain jurisdiction  on  the  minister  of  public  instruc- 
tion, labor  and  industry,  after  the  plan  of  the  Eng- 
lish act  of  1896.     This  act,  also  unsuccessful,  was 

146 


AUSTRALIAN    EXPERIMENTS        147 

superseded  by  a  compulsory  arbitration  law  in  1901, 
following  the  outlines  of  the  New  Zealand  law  but 
minus  any  plan  of  conciliation.  This  act  gave  way 
to  the  industrial  disputes  act  of  1908  with  an  indus- 
trial court  and  wages  boards  for  each  industry  com- 
ing under  the  statute.  A  new  law  was  passed  in 
1912,  superseding  that  of  1908.  South  Australia 
set  up  a  comjDlex  system  in  1894  but  adopted  the 
wages  board  system  in  1908.  Queensland  has  the 
wages  board  system.  Western  Australia  has  an  act 
In  force,  modeled  after  the  New  Zealand  plan.  The 
commonwealth  act  applying  to  interstate  disputes 
was  passed  in  1904, 

Originally,  the  wages  boards  created  for  and  by 
the  Australian  states  were  set  up  for  the  specific 
purpose  of  regulating  wages  and  establishing  a  min- 
imum rate  in  each  industry.  From  time  to  time 
the  powers  of  these  boards  were  extended  to  in- 
dustrial disputes  involving  other  questions  besides 
that  of  wages.  Australia,  as  well  as  New  Zealand, 
practically  has  eliminated  all  industries  which  pay 
less  than  a  fair  living  wage.  The  theory  obtains 
generally  throughout  Australia  that  no  such  indus- 
tries have  a  right  to  exist. 

The  six  Australian  states  of  New  South  Wales, 
Victoria,    Queensland,    South    Australia,    Western 


148        INDUSTRIAL   ARBITRATION 

Australia  and  Tasmania  have  a  population  of  about 
half  that  of  New  York  State  and  less  than  that  of 
Illinois  or  Pennsylvania,  yet  Illinois  with  a  greater 
population  than  the  six  Australian  states  has  an  area 
of  only  one-fiftieth  that  of  the  commonwealth.  The 
population  of  Australia  is  an  average  of  only  one 
and  five-tenths  persons  to  the  square  mile. 

New  South  Wales,  Victoria,  Queensland,  South 
Australia,  Western  Australia  and  Tasmania  still 
have  enormous  areas  of  Crown  land  open  to  settle- 
ment and  available  to  homesteaders  on  the  most 
favorable  terms.  The  government  savings  banks  of 
New  South  Wales  lend  money  to  settlers  and  South 
Australia  permits  settlers  to  take  up  over  twenty- 
four  thousand  dollars'  worth  of  ordinary  lands,  or, 
if  suitable  for  cultivation,  sufficient  for  from  five 
to  ten  thousand  sheep.  Payments  may  be  made  in 
sixty  semi-annual  instalments.  Homestead  blocks 
worth  four  hundred  eighty-six  dollars  may  be  taken 
on  perpetual  lease  or  covenant  to  purchase  and  ad- 
vances up  to  two  hundred  forty-three  dollars  may 
be  made  by  the  government  to  assist  homesteaders 
in  erecting  buildings,  dams  or  fences,  or  for  clearing 
the  land.  Tasmania  permits  the  purchase  of  two 
hundred  acres  of  land  at  four  dollars  and  eighty- 
six  cents  an  acre  on  eighteen  years'  credit.    Victoria, 


AUSTRALIAN    EXPERIMENTS        149 

under  the  closer  settlements  act,  may  advance  two 
thousand  four  hundred  thirty  dollars  to  each  settler 
from  government  funds  for  the  Improvement  of  the 
land.  Advances  up  to  three  thousand  four  hundred 
three  dollars  are  made  for  the  improvement  of  lands 
settled  in  Western  Australia. 

With  its  millions  of  acres  of  unsettled  land  avail- 
able to  newcomers,  it  is  not  surprising  that  labor  is 
scarce  in  Australia.  Nor  is  it  to  be  expected  that 
labor  conditions  will  become  very  much  aggravated 
as  long  as  the  laboring  man  may  become  a  pro- 
prietor of  the  soil  and  avoid  unwholesome  working 
conditions.  In  a  country  like  the  United  States, 
where  the  public  land  is  gone  and  where  agricul- 
tural development  has  reached  an  advanced  state, 
the  factory  worker  has  no  alternative  to  which  he 
may  turn  if  wages  fall,  hours  are  long,  or  conditions 
of  employment  intolerable. 

Manufacturing  is  on  the  Increase  In  Australia. 
In  1910  there  were  fourteen  thousand  factories  in 
the  commonwealth,  employing  nearly  two  hundred 
and  ninety  thousand  hands.  These  factories  paid 
out  in  wages  one  hundred  sixteen  million  dollars 
and  had  an  annual  output  valued  at  about  six  hun- 
dred million  dollars. 

The  mineral  production  in   19 10  amounted   ap- 


I50         INDUSTRIAL    ARBITRATION 

proximately  to  one  hundred  million  dollars,  of 
which  about  one-half  was  gold.  Coal,  silver-lead 
and  zinc  were  the  leading  products  of  the  New 
South  Wales  mines.  Copper  and  tin  were  the  lead- 
ing productions  in  Tasmania,  gold  and  copper  in 
Queensland  and  South  Australia  and  gold  and  coal 
in  Victoria  and  Western  Australia. 

In  1910-11,  the  six  Australian  states  harvested 
ninety-five  million  bushels  of  wheat,  over  fifteen 
million  bushels  of  oats  and  two  million  bushels  of 
barley,  thirteen  million  bushels  of  corn,  and  pro- 
duced nearly  six  million  gallons  of  wine. 

The  six  states  also  produced  nearly  two  hundred 
million  pounds  of  butter  in  19 10  and  the  total  dairy 
exports  in  191 1  amounted  to  about  twenty  million 
dollars.  The  wool  production  In  Australia  in  1910 
amounted  to  a  little  less  than  one  hundred  fifty  mil- 
lion dollars.  Australia  exported  chilled  beef 
amounting  to  about  five  million  dollars;  chilled  mut- 
ton amounting  to  twice  as  much  and  flour  to  the 
amount  of  over  five  million  dollars. 

In  a  general  way,  these  products  represent  the 
principal  occupations  of  the  Australian  people. 
While  industry  is  somewhat  more  complex  and 
vaster  in  Australia  than  it  Is  in  New  Zealand,  It  is 
far  less  so  than  in  the  United  States.     Mining  and 


AUSTRALIAN    EXPERIMENTS        151 

manufacturing,  as  might  be  expected,  are  the  sources 
of  most  industrial  troubles  in  the  Australian  com- 
monwealth. The  Australian  Y ear-Book  for  191 2 
lists  the  several  persons,  male  and  female,  engaged 
in  the  principal  occupations  as  follows :  profes- 
sional, 111,190;  domestic  service,  111,456;  primary 
producers,  chiefly  agricultural  workers,  531,389; 
commercial,  including  transportation,  310,034;  in- 
dustrial workers,  441,951;  pensioners,  26,458,  and 
dependents,  including  children,  2,123,097. 

The  six  principal  cities  of  Australia  are  the  cap- 
itals of  the  six  states :  Sydney,  Brisbane,  Ade- 
laide, Hobart,  Melbourne  and  Perth.  Sydney  and 
Melbourne  are  the  largest  cities.  The  population 
for  the  ten-mile  radius  was  given  as  follows :  Syd- 
ney, 649,503;  Brisbane,  139,480;  Adelaide,  189,- 
646;  Hobart,  39,937;  Melbourne,  588,971;  Perth, 
106,792.  The  population  of  the  cities  proper,  how- 
ever, was  much  less  than  these  figures  indicate. 

Australia  has  always  encouraged  the  immigration 
of  desirable  classes  of  people.  From  1851  to  19 10.. 
it  is  estimated  that  over  six  hundred  thousand  im- 
migrants had  been  assisted  in  a  financial  way  by 
the  several  Australian  states.  Notwithstanding  that 
fact,  the  population  remains  largely  British.  In 
1910  less  than  four  per  cent,  of  the  population  had 


152         INDUSTRIAL    ARBITRATION 

been  born  outside  the  British  dominion  and  more 
than  three  million  out  of  a  population  of  less  than 
four  million  five  hundred  thousand  had  been  born 
in  the  Australian  commonwealth.  There  is  a 
marked  prejudice  in  Australia  against  Japanese 
Immigration.  The  Labor  party  is  opposed  to  Ger- 
man immigration. 

Australia  has  a  system  of  old  age  and  invalid 
pensions  under  which  nearly  eighty-three  thousand 
persons  received  financial  assistance  in  1910.  The 
average  fortnightly  old  age  pension  is  nineteen  shil- 
lings and  the  average  fortnightly  invalid  pension 
is  nineteen  shillings  six  pence.  The  six  Australian 
states  paid  out  on  account  of  old  age  and  invalid 
pensions  in  1910  ten  million  dollars,  or  an  average 
of  two  dollars  and  twenty  cents  for  each  head  of 
po23ulation. 

All  the  Australian  states  have  a  land  and  income 
tax  similar  to  that  of  West  Australia,  where  from 
one-half  to  one  pence  on  each  one  pound  of  the  un- 
improved value  of  the  land  is  collected.  There  is 
an  income  tax  of  four  pence  on  each  one  pound  of 
income  with  an  exemption  of  two  hundred  pounds 
(nine  hundred  seventy-two  dollars)  in  Western 
Australia. 

Education  is  compulsory  throughout  the  common- 


AUSTRALIAN    EXPERIMENTS        153 

wealth  of  Australia  and  public  instruction  Is  free 
in  the  primary  schools  of  New  South  Wales,  Vic- 
toria, Queensland,  South  Australia,  Tasmania  and 
West  Australia.  In  19 10  there  were  nearly  eight 
thousand  state  schools,  with  a  total  enrolment  of 
three-quarters  of  a  million,  and  seventeen  thousand 
teachers  in  the  six  states.  In  the  commonwealth, 
four  and  five-tenths  per  cent,  of  the  population  over 
fifteen  years  of  age  were  unable  to  read  in  1901, 
This  was  approximately  the  same  proportion  which 
obtained  in  1896.  It  is  somewhat  lower  than  the 
average  illiteracy  in  the  United  States. 

Taking  Into  consideration  the  character  of  the 
Australian  population — the  relatively  small  percent- 
age of  foreign-born  residents ;  the  high  educational 
standards  for  children  and  the  low  rate  of  illiteracy  ; 
the  large  surplus  of  land  and  the  liberal  state  aid 
to  colonists ;  the  emphasis  on  agriculture  as  a  vo- 
cation; the  scarcity  of  labor  generally  and  the  state 
assistance  given  to  the  invalids  and  the  aged — Aus- 
tralia has  a  much  simpler  problem  than  the  United 
States  or  any  of  the  European  countries.  As  Aus- 
tralia becomes  more  and  more  a  manufacturing 
state — when  the  land  is  exhausted — disputes  be- 
tween employers  and  employees,  no  doubt,  will  mul- 
tiply.    They  are  certain  to  do  so  unless  Australia 


154         INDUSTRIAL    ARBITRATION 

is  able  to  maintain  a  thoroughly  enlightened  and 
happy  proletariat,  working  under  favorable  condi- 
tions. 

Victoria  and  New  South  Wales  were  the  first 
Australian  states  to  undertake  conciliation  and  ar- 
bitration by  state  agency,  their  first  laws  having 
been  passed  in  1891.  South  Australia  passed  the 
first  arbitration  statute  in  1894  and  West  Australia 
followed  in  1900.  The  commonwealth  act  was 
passed  in  1904. 

By  the  act  of  1891,  Victoria  provided  for  the 
voluntary  arbitration  of  collective  disputes  some- 
what after  the  system  of  the  English  councils  of 
conciliation  act  of  1867,  except  that  the  latter  ap- 
plied only  to  individual  disputes  and  enforced  ar- 
bitration. Under  the  Victorian  act,  any  number  of 
employers  and  employees  of  a  locality  might  agree 
to  form  a  council  of  conciliation  and  jointly  petition 
the  governor  in  council  for  a  license  to  be  issued 
at  his  discretion.  Every  licensed  council  was  to- 
be  composed  of  an  equal  number  of  employees  and 
employers,  not  less  than  two  nor  more  than  ten. 
Members  of  the  council  were  elected.  A  chairman 
who  might  take  part  in  the  deliberations  but  who 
had  no  vote  was  chosen  from  outside  the  members 
of  the  council.     Either  or  both  parties,  under  the 


AUSTRALIAN    EXPERIMENTS        155 

act,  might  bring  a  matter  before  the  council  on 
complaint  to  the  chairman.  The  matter  was  first 
referred  to  a  committee  of  conciliation  consisting  of 
one  employer  and  one  employee.  If  this  failed, 
the  matter  was  laid  before  the  council.  This  act 
always  remained  a  dead  letter. 

In  1896,  wages  boards  were  introduced  in  Vic- 
toria. The  original  act  made  provision  only  for  the 
regulation  of  wages  for  the  women  and  children 
but  was  afterward  extended  to  apply  to  adult  oper- 
ators of  both  sexes.  Originally,  it  applied  only  to 
the  clothing,  furniture,  breadmaking  and  butchery 
trades,  but  by  an  amendment  of  1900  it  was  ex- 
tended to  all  trades  connected  with  factories,  and  by 
an  amendment  of  1907  it  was  extended  to  certain 
trades  not  connected  with  factories — carters,  drivers, 
building,  quarrying,  distribution  of  wood,  coke  or 
coal.  Wages  boards  consisted  of  from  four  to  ten 
members  and  employers  and  employees  were  equally 
represented.  If  one-fifth  of  the  employers  or  em- 
ployees objected  to  a  representative  nominated  for 
them,  they  might  elect  one.  An  independent  chair- 
man was  appointed  by  the  executive.  The  board 
held  office  for  three  years.  Wages  boards  might  be 
appointed  on  application  of  either  party.  A  court 
of  appeal,  consisting  of  a  supreme  judge,  had  power 


156         INDUSTRIAL    ARBITRATION 

under  the  act  to  review  the  determination  of  boards, 
and  assessors  might  be  appointed  to  assist  the  judge. 
The  act  fixed  an  absolute  minimum  wage.  While 
it  was  originally  designed  to  guarantee  a  minimum 
wage,  it  has  gradually  grown  to  be  used  more  for 
the  purpose  of  conciliation. 

Wages  boards  have  power  to  determine  the  low- 
est wages  in  an  industry  and  may  fix  a  special  wage 
for  old,  slow  or  infirm  workers.  Hours  of  labor 
are  fixed  by  the  boards  and  the  wages  of  children. 
An  average  of  thirty-eight  convictions  a  year  for 
violating  determinations  of  wages  boards  was  re- 
ported for  the  seven  years,   1 901 -07. 

If  men  do  not  accept  the  decisions  of  the  wages 
boards  and  go  out  on  a  strike,  the  government, 
through  the  labor  minister,  may  suspend  the  award 
in  whole  or  in  part  not  to  exceed  twelve  months 
and  leave  the  employers  free  to  employ  whomever 
they  will  and  pay  whatever  they  wish.  Harris 
Weinstock,  in  his  survey  of  Victorian  labor  condi- 
tions, says  the  wages  boards  have  "more  than  made 
good."  He  declares  they  have  eliminated  sweat- 
ing and  aided  the  advent  of  industrial  peace. 

Victoria  had  an  eight-hour  day  in  the  building 
industry  as  long  ago  as  1856,  a  standard  not  reached 
by  the  United  States  until   1903.     Employers  are 


AUSTRALIAN    EXPERIMENTS        157 

well  organized.  The  trade  unions  are  in  good  re- 
pute but  the  union  and  non-union  workers  gener- 
ally labor  side  by  side.  In  a  period  of  twelve  years, 
there  were  only  eight  or  nine  strikes  and  only  one 
instance  of  a  strike  against  a  legal  award,  which, 
by  the  way,  the  strikers  eventually  won.  Lately, 
labor  has  manifested  some  discontent  with  the  con- 
ciliation and  arbitration  laws,  because  gains  in 
wages  have  been  small  in  recent  years  compared 
to  gains  during  the  earlier  years  of  the  operation 
of  the  act.  One  serious  objection  that  may  be  raised 
against  a  fixed  wage  is  the  fact  that  the  cost  of 
living  fluctuates  and  a  fixed  wage  is  not  responsive 
to  this  fluctuation.  In  191 1,  one  hundred  sixty-two 
trades  were  registered  under  the  wages  board  act 
of  Victoria.  Fifty-nine  of  these  trades  and  eighty- 
eight  per  cent,  of  the  employees  were  subject  to  the 
jurisdiction  of  the  wages  board. 

New  South  Wales  passed  its  trade  dispute  con- 
ciliation and  arbitration  act  after  the  great  strike 
of  1 89 1.  It  provided  for  a  voluntary  court  of  con- 
ciliation made  up  of  sixteen  members,  an  equal  num- 
ber appointed  from  the  employers  and  employees, 
and  a  council  of  arbitration  appointed  by  the  gov- 
ernor. The  third  member  of  the  council  of  arbi- 
tration was  required  to  be  an  "impartial  person." 


158        INDUSTRIAL   ARBITRATION 

The  act  was  passed  to  continue  four  years  but  it 
was  a  complete  failure,  only  two  of  the  sixteen  cases 
referred  having  been  settled  during  the  first  year 
of  the  operation  of  the  act.  An  appropriation  to 
continue  the  boards  was  refused  in  1894.  The  em- 
ployers were  hostile  from  the  beginning. 

The  conciliation  and  arbitration  act  of  1899  con- 
ferred upon  the  minister  of  public  instruction,  labor 
and  industry  the  power  to  direct  a  public  inquiry 
on  application  of  either  party;  to  appoint  one  or 
more  conciliators,  and  on  the  application  of  both 
parties,  to  appoint  an  arbitrator  after  the  plan  of 
the  English  act  of  1896.  This  act  was  a  total  fail- 
ure, largely  because  of  the  unfriendliness  of  the  em- 
ployers toward  the  statute. 

A  compulsory  arbitration  law,  following  some- 
what the  outlines  of  the  New  Zealand  act  but  which 
did  not  provide  for  conciliation,  was  passed  in  1901. 

"The  New  South  Wales  system  of  compulsory  ar- 
bitration has  been  in  full  operation,  with  the  con- 
tinued growth  of  the  court's  business,"  said  Leonard 
W.  Hatch  in  1905,  but  "the  act  seemingly  did  not 
work  as  its  authors  had  hoped."  The  law  was  su- 
perseded by  the  industrial  disputes  act  of  1908, 
much  against  the  wishes  of  the  Labor  party.  The 
act  of  1908  included  a  schedule  of  some  eighty  In- 


AUSTRALIAN    EXPERIMENTS        159 

dustries  and  provided  for  the  appointment  of  a 
wages  board  in  each  industry  on  recommendation 
of  an  industrial  court.  Each  board  consisted  of  a 
chairman  and  not  less  than  two  nor  more  than  four 
members,  half  employers  and  half  employees.  Ap- 
pointment of  members  was  made  by  the  governor  on 
recommendation  of  the  industrial  court  but  they 
were  usually  nominated  by  the  respective  parties. 
The  chairman  might  be  agreed  upon  or  nominated 
by  the  industrial  court.  Boards  had  power  to  decide 
industrial  disputes,  and  to  regulate  and  control 
wages  and  working  conditions.  The  industrial  court 
took  the  place  of  the  arbitration  court  under  the  act 
of  1908.  Appeal  from  the  wages  board  to  the  in- 
dustrial court  was  allowed.  A  heavy  penalty  was 
fixed  for  causing  strikes  and  lockouts.  Two  con- 
victions under  this  clause  resulted  during  the  first 
year  the  act  was  in  force. 

The  act  of  1908  was  superseded  by  the  industrial 
arbitration  act  of  191 2.  This  act  created  a  court  of 
industrial  arbitration  consisting  of  a  Supreme  Court 
judge  and  district  court  judge  or  barrister  of  five 
years'  standing,  appointed  by  the  governor,  also  an 
additional  judge  and  a  deputy  judge.  Boards  un- 
der the  old  act  were  dissolved.  Twenty-seven  indus- 
tries  were  scheduled  for  which   industrial  boards 


i6o         INDUSTRIAL    ARBITRATION 

were  appointed  on  recommendation  of  the  court  by 
the  minister  of  the  Crown.  The  schedule  may  be 
varied  by  the  minister.  Chairmen  of  the  boards 
are  appointed  by  the  minister  on  recommendation 
of  the  court.  He  has  no  vote.  From  two  to  four 
other  members  of  the  board,  half  employers  and 
half  employees,  recommended  by  the  court,  are  ap- 
pointed by  the  minister.  Special  boards  may  be 
created  for  jurisdictional  disputes  between  trade  un- 
ions. Industrial  boards  are  created  for  a  second 
schedule  of  industries.  The  jurisdiction  of  the 
boards  includes  all  power  exercised  under  the  act 
of  1908.  Their  awards  are  binding  for  three  years 
but  on  application  to  the  court,  the  awards  may 
be  amended,  varied,  rescinded,  or  a  new  award 
substituted.  Proceedings  are  commenced  by  refer- 
ence to  boards  by  the  court  or  minister  on  applica- 
tion of  employer  or  employee,  when  not  less  than 
twenty  employees  are  affected.  Boards  have  con- 
ciliatory powers.  Special  committees  for  concilia- 
tion are  provided  for  metal  and  coal  miners  when 
more  than  five  hundred  are  involved  and  a  special 
commissioner,  appointed  by  the  minister  of  the 
Crown,  is  charged  with  wide  powers  to  bring  about 
settlements  in  cases  not  covered  by  the  act.  Lock- 
outs and  strikes  are  punishable  by  heavy  penalties, 


AUSTRALIAN    EXPERIMENTS        i6i 

and  heavy  penalties  are  also  prescribed  for  breaches 
of  awards  and  other  offenses. 

Boards  have  power  to  declare  "that  preference 
of  employment  shall  be  given  to  any  industrial  un- 
ion of  employees  over  other  persons  offering  their 
labor  at  the  same  time,  other  things  being  equal." 
Declarations  of  preference  may  be  suspended  if  em- 
ployees engage  in  strikes. 

About  seventy-five  trades  registered  under  the 
1908  act.  Twenty-four  trades,  including  sixty-two 
per  cent,  of  the  employees,  had  come  under  the  jur- 
isdiction of  the  wages  boards  by  191 1.  In  1912, 
the  court  of  arbitration  had  made  awards  in  one 
hundred  thirty  cases,  each  affecting  many  other  dis- 
putes. New  South  Wales  provided  for  the  legal 
incorporation  of  trade  unions,  under  prescribed  con- 
ditions, and  Imposed  legal  responsibilities  for  the 
care  of  trade  union  funds  In  1912. 

South  Australia  provided  for  the  registration  of 
trade  unions  and  employers'  associations,  Industrial 
agreements  and  boards  of  conciliation,  both  public 
and  private,  in  the  act  of  1894.  Awards  under 
the  act  were  compulsory  and  it  was  an  offense  for  a 
registered  organization  to  engage  In  a  strike  or 
lockout.  It  was  not  necessary  for  employers  or  em- 
ployees to  come  under  the  act,  and  as  late  as  1905 


i62         INDUSTRIAL   ARBITRATION 

It  was  pronounced  a  complete  failure  for  the  reason 
that  neither  employers  nor  work  people  chose  to 
accept  what  it  offered  them.  South  Australia 
adopted  a  wages  board  system  in  1908  and  one 
hundred  thirty-nine  boards  had  been  created  by  the 
middle  of  1910.  They  had  decided  ninety  cases. 
Queensland  has  the  wages  board  system. 

Western  Australia  passed  an  act  modeled  after 
the  New  Zealand  law  in  1900  but  this  act  was  re- 
placed by  another  in  1902.  The  original  law  was 
different  from  the  New  Zealand  law  in  that  it  sought 
to  prohibit  strikes  and  lockouts  altogether  instead 
of  simply  prohibiting  them  after  a  reference  to  a 
board  or  court.  The  court  had  made  awards  in 
seventy-one  cases  in  191 2,  each  affecting  many  other 
disputes. 

In  1904,  the  Australian  Parliament  passed  the 
commonwealth  conciliation  and  arbitration  act, 
which  provided  a  system  of  compulsory  arbitration 
similar  to  that  in  New  Zealand  for  all  interstate 
labor  disputes.  The  commonwealth  court  was  given 
power  to  employ  the  usual  methods  of  conciliation, 
and  failing  in  that,  to  make  an  equitable  award 
binding  on  all  parties.  Strikes  and  lockouts  were 
subjected  to  a  penalty  of  four  thousand  eight  hun- 
dred sixty  dollars.     Breaches  of  the  court's  award 


AUSTRALIAN    EXPERIMENTS       163 

were  subject  to  a  penalty  of  four  thousand  eight 
hundred  sixty  dollars  In  case  of  the  employer  and 
forty-eight  dollars  and  sixty  cents  in  case  of  an  in- 
dividual employee.  The  power  to  fix  a  minimum 
wage  was  lodged  in  the  commonwealth  court,  also 
the  right  to  deprive  those  falling  to  observe  an 
award  of  all  rights  and  privileges  under  the  act. 

One  case  arose  under  the  act  of  1904  during  the 
first  five  years  of  Its  existence  involving  four  thou- 
sand men  In  a  New  South  Wales  mine.  It  resulted 
in  a  victory  for  the  men.  The  decision,  however, 
was  severely  criticized  by  the  employers  and  not 
wholly  satisfactory  to  the  men. 

This  act  was  amended  In  1909,  19 10  and  191 1. 
The  amendments  of  1909  prevented  employers  from 
discharging  employees  about  to  be  registered  under 
the  act.  The  definition  of  employee  was  extended 
to  additional  Industries  under  the  amendment  of 
1 910,  and  the  president  of  the  commonwealth  con- 
ciliation and  arbitration  court  was  authorized  to 
compel  the  attendance  of  employers  and  workers 
when  a  labor  dispute  Is  threatened,  under  penalty 
of  five  hundred  pounds.  The  definitions  of  "Indus- 
try" and  "Industrial  dispute"  were  extended  by  the 
amendment  of  191 1,  amounting  to  an  extension  of 
the  powers  of  the  conciliation  and  arbitration  court. 


i64        INDUSTRIAL   ARBITRATION 

Government  employees  were  permitted  to  come  un- 
der the  act  by  another  amendment  of  191 1  and 
provision  was  made  for  their  registration  in  group 
organizations. 

On  April  26,  191 1,  Australia  by  referendum  vote 
decided  overwhelmingly  against  giving  to  the  fed- 
eral government  control  of  all  trade  and  commerce 
instead  of  only  interstate  and  foreign  commerce. 
On  the  same  date,  the  electors  of  Australia  voted 
overwhelmingly  against  taking  from  the  states  the 
power  to  deal  with  wages  disputes,  even  where  state 
employees  were  concerned,  and  lodging  that  power 
in  the  commonwealth  government.  Opponents  of 
the  proposal  pointed  out  that  an  elaborate  system 
of  wages  boards  already  existed  in  the  states  and 
that  it  would  be  an  enormous  expense. 

In  191 1,  the  Labor  party  succeeded  in  ousting 
the  Liberal  ministry  of  Western  Australia.  The 
Liberal  party  held  its  own  in  Victoria  and  badly 
defeated  the  Labor  party  in  South  Australia  but 
in  New  South  Wales  the  two  parties  emerged  from 
the  elections  about  equally  divided.  The  Laborites 
had  a  bare  majority  of  one.  In  the  commonwealth, 
however,  the  Labor  party  was  successful  in  passing 
the  commonwealth  defense  act  after  the  plan  laid 
down  by  Lord  Kitchener  when  he  visited  the  coun- 


AUSTRALIAN    EXPERIMENTS        165 

try  in  1908.  The  act  Is  aimed  at  defense  against 
the  "Japanese  peril."  All  boys  from  the  age  of 
twelve  to  the  age  of  twenty-six  are  liable  to  mil- 
itary training  and  after  the  age  of  twenty-six  they 
are  considered  as  reserves  for  the  army.  The  So- 
cialists resisted  the  passage  of  the  act  but  they  are 
not  strong  in  Australia. 

The  Australian  Socialists  are  opposed  to  legal 
arbitration.  Both  wings  of  the  Industrial  Workers 
of  the  World — the  Chicago  faction  espousing  direct 
action  and  the  Detroit  faction  espousing  parliamen- 
tary action — are  represented  in  Australia.  There 
are  five  locals  of  the  I.  W.  W.  in  Australia  and 
two  in  New  Zealand.  Needless  to  say  the  I.  W. 
W.  opposes  the  Labor  party  even  more  vigorously 
than  it  opposes  the  so-called  Capitalistic  class. 

Whether  Australian  progress  is  due  to  the  elab- 
orate system  of  industrial  legislation  of  the  country 
or  is  a  fact  in  spite  of  it,  progress  nevertheless  is  a 
fact.  The  population  increased  twenty-one  per  cent, 
from  1900  to  191 1.  In  1909,  there  were  twenty- 
seven  miles  of  railway  for  each  ten  thousand  in- 
habitants in  the  United  States  while  In  1911  there 
were  thirty-nine  and  three-fourths  miles  to  each 
ten  thousand  inhabitants  of  Australia.  Savings- 
banks  deposits  are  increasing  yearly  and  deposits 


i66         INDUSTRIAL    ARBITRATION 

in  Australian  banks  are  likewise  increasing.  The 
total  number  of  depositors  is  more  significant  than 
the  volume  of  deposits.  In  191 1  they  numbered 
1,483,573  or  one  out  of  every  three  of  the  entire 
population.  Manufactures,  agriculture  and  mining 
are  in  healthful  condition  and  foreign  commerce  is 
growing.  A  mistake  might  be  made  in  accounting 
for  Australia's  prosperity  but  no  mistake  can  be 
made  In  maintaining  that  It  is  a  fact. 


CHAPTER  VII 

OFFICIAL  INVESTIGATIONS 

THE  Canadian  industrial  disputes  investiga- 
tion act  of  1907,  with  the  amendments  of 
1 910,  was  a  notable  departure  from  legislation 
theretofore  enacted  inasmuch  as  it  imdertook  to  pre- 
vent strikes  and  lockouts  in  certain  industries  until 
an  official  investigation  of  grievances  could  be  made. 
The  act  was  founded  on  the  theory  that  public 
opinion  will  operate  with  wholesome  effect  to  avert 
an  open  breach  between  employer  and  employee  if 
public  opinion  has  available  for  its  guidance  all  the 
facts  in  a  controversy.  It  was  contended  by  the 
proponents  of  the  measure  that  the  publication  of 
a  report  made  by  impartial  officials  under  sanction 
of  the  government  would  supply  the  facts  required 
for  the  formation  of  an  intelligent  and  active  pub- 
lic opinion.  This  contention  was  made  to  appear 
the  more  plausible  since  the  operation  of  the  act 
was  limited  to  public  utilities — transportation,  com- 
munication,  mining,   gas,   light,  water  and  power 

167 


i68        INDUSTRIAL    ARBITRATION 

companies — enterprises  in  which  all  the  people  have 
at  all  times  a  very  intimate  interest. 

Although  the  act  has  not  worked  with  universal 
satisfaction  It  has  reduced  the  number  of  strikes  and 
lockouts  in  Canada.  For  this  reason  and  for  the 
further  reason  that  there  is  considerable  sentiment 
favoring  a  trial  of  the  statute  In  this  country,  an 
examination  of  Industrial  conditions  in  Canada,  to- 
gether with  certain  comparisons  and  contrasts  with 
industrial  conditions  In  the  United  States,  seems 
warranted.  Perhaps  this  examination  will  disclose 
certain  differences  In  Industrial  conditions,  upon 
which  depends  the  success  or  failure  of  the  Canadian 
act  in  the  United  States,  Whether  these  differences 
In  Industrial  conditions  would  affect  the  operation 
of  the  Canadian  act  In  the  United  States,  they  are 
sufHcIently  marked  to  be  interesting  in  any  survey 
for  legislation  having  as  Its  object  industrial  peace. 

Both  countries  comprise  enormous  areas  of  land, 
although  Canada  Is  the  larger  by  seven  hundred 
fifty  thousand  square  miles.  Canada  has  a  popula- 
tion about  equal  to  that  of  the  United  States  In 
1810,  or,  while  the  population  of  the  United  States 
was  thirty  and  nine-tenths  per  square  mile  In  19 10 
that  of  Canada  was  less  than  two  per  square  mile. 
This  difference  Is  an  Important  one.      Canada  has 


OFFICIAL    INVESTIGATIONS         169 

over  four  hundred  million  acres  of  land  available 
for  settlement  in  three  provinces,  Manitoba,  Sas- 
katchewan and  Alberta,  and  every  wage  earner  has 
the  alternative,  if  conditions  prove  unsatisfactory, 
of  becoming  a  proprietor  on  his  own  farm.  That 
wage  earners  are  becoming  proprietors  and  that  they 
possess  a  potent  argument  against  conditions  which 
make  for  industrial  unrest  is  evidenced  by  the  fact 
that  in  the  year  1910  entries  were  made  for  48,257 
homesteads  in  Alberta,  British  Columbia,  Manitoba 
and  Saskatchewan.  In  that  year,  new  settlers  ob- 
tained over  six  and  one-half  million  acres  of  Do- 
minion land  for  a  small  investment.  Opportunity  to 
settle  on  the  "free"  land  of  the  government  does  not 
insure  the  very  best  working  conditions  in  industry 
nor  preclude  strikes  and  lockouts,  as  we  may  remem- 
ber that  this  country  had  its  strikes  before  the  public 
land  was  all  taken  up.  But  It  does  serve  as  a  power- 
ful check  against  really  bad  conditions. 

Any  person  who  is  sole  head  of  a  family,  or  any 
male  over  eighteen  years,  who  is  a  British  subject 
or  declares  his  intention  to  become  a  British  sub- 
ject, or  a  widow  with  minor  children  of  her  own, 
dependent  on  her  for  support,  may  upon  payment  of 
ten  dollars  obtain  entry  to  a  quarter-section  of  Do- 
minion lands  in  Manitoba,  Saskatchewan  or  Alberta. 


I70        INDUSTRIAL    ARBITRATION 

The  homesteader  must  erect  a  habitable  house,  live 
upon  the  homestead  six  months  and  cultivate  the 
land  In  each  of  three  years.  Homesteads  may  be 
purchased  in  certain  sections  at  three  dollars  an  acre. 

Canada  discloses  the  same  tendency  as  the  United 
States  with  regard  to  the  movement  of  population 
— a  tendency  toward  a  congestion  in  large  cities. 
The  rural  population  between  1901  and  191 1  in- 
creased seventeen  per  cent,  while  the  urban  popula- 
tion In  the  same  period  increased  sixty -two  per  cent. 
But  Canada  has  only  four  cities  with  a  population 
of  more  than  one  hundred  thousand,  Vancouver, 
Winnipeg,  Toronto  and  Montreal.  Otherwise  there 
are  only  two  cities,  Hamilton  and  Ottawa,  with  a 
population  of  more  than  fifty  thousand.  The  whole 
population  increased  thirty-four  and  five-tenths  per 
cent,  between  1901  and  191 1  while  the  increase  in 
this  country  was  twenty-one  and  two-hundredths 
per  cent. 

An  alien  labor  act  of  1906  required  Asiatic  im- 
migrants to  have  two  hundred  dollars  and  a  ticket 
to  their  destination  to  be  admitted  to  Canadian  ports. 
A  five-hundred-dollar  fee  is  charged  Chinese  im- 
migrants. Fees  ranging  from  twenty-five  dollars 
up  to  five  hundred  dollars  were  charged  all  Immi- 
grants until   19 10,  when,  owing  to  the  scarcity  of 


OFFICIAL    INVESTIGATIONS        171 

railway  laborers,  the  immigration  acts  were 
amended  to  admit  railway  construction  laborers 
guaranteed  employment  by  railway  contractors,  ir- 
respective of  the  money  qualifications.  This  change 
in  the  immigration  laws  proved  a  scarcity  of  un- 
ekilled  labor  and  therefore  the  absence  of  a  labor  sur- 
plus. The  absence  of  a  labor  surplus  has  obvious 
advantages  for  the  wage  earner,  skilled  or  unskilled. 
But  lately  the  Canadian  government,  facing  the 
problem  of  wide-spread  unemployment,  has  under- 
taken to  deport  aliens  unable  to  support  themselves 
■ — an  evidence  that  this  country  must  abandon  its 
policy  of  artificially  stimulating  immigration. 
Henceforth,  an  oversupply  of  labor  is  to  be  a 
factor  in  the  realization  of  industrial  peace. 

It  does  not  appear  that  the  Canadian  population 
is  gaining  much  by  reproduction,  since  the  immigra- 
tion between  1901  and  1912  was  2,069,562  and  the 
total  increase  in  population  between  1901  and  191 1 
was  only  1,834,049.  In  the  United  States,  how- 
ever, for  the  last  decade,  a  larger  per  cent,  of  the 
gain  in  population  was  from  immigration  than  from 
reproduction. 

Of  the  Canadian  immigration,  from  thirty-seven 
to  forty-eight  per  cent,  is  from  the  United  Kingdom. 
In  191 2,  a  typical  year,  the  total  immigration  was 


172        (INDUSTRIAL    ARBITRATION 

354,237,  of  which  138,121  came  from  the  British 
dominion,  133,710  from  the  United  States  and  82,- 
406  from  other  foreign  countries.  The  British  im- 
migration amounted  to  thirty-nine  per  cent,  of  the 
whole  and  the  immigration  from  the  United  States 
to  thirty-seven  per  cent,  of  the  whole,  a  total  of 
seventy-six  per  cent,  from  the  United  States  and 
Great  Britain,  leaving  only  twenty-four  per  cent, 
from  foreign  countries.  Of  the  twenty-four  per 
cent,  coming  from  countries  other  than  the  United 
States  and  Great  Britain,  about  two-thirds  came 
from  Austria,  Ruthenia,  Bulgaria,  China,  Italy, 
Austria  and  Russia  Poland,  Russia  and  Finland. 
The  significance  of  the  relatively  small  percentage 
of  immigration  from  other  than  English-speaking 
countries  is  apparent.  There  is  no  great  infusion 
of  deteriorated  peoples  and  unwholesome  standards. 
Canada  maintains  immigration  agents  in  all  of 
the  principal  cities  of  the  United  States  and  Great 
Britain  and  in  a  few  foreign  countries.  A  large 
majority  of  Canadian  immigrants  seek  the  agricul- 
tural provinces  of  the  west  where  they  engage  in 
farming  and  therefore  have  no  direct  effect  on  the 
industrial  life  of  the  Dominion,  the  supply  of  labor 
for  manufacturing  and  the  standard  of  living  among 
factory  workers, 


OFFICIAL    INVESTIGATIONS        173 

According  to  the  census  of  191 1,  there  are  19,218 
industrial  establishments  in  Canada  having  a  cap- 
ital of  one  and  one-fourth  billion  dollars  and  em- 
ploying a  half  million  hands.  Wages  paid  out  in 
a  single  year  amounted  to  about  two  hundred  mil- 
lion dollars  or  an  average  of  four  hundred  eighteen 
dollars  a  year.  Annual  wages  in  fifteen  leading 
occupations  obtained  by  dividing  the  total  wages 
paid  by  the  number  of  employees,  are  herewith 
given : 

Food  products,  $275. 

Textiles,  $367. 

Iron  and  steel  products,  $530. 

Timber  and  lumber  and  re-manufactures,  $358. 

Leather  and  its  finished  products,  $424. 

Paper  and  printing,  $475. 

Liquors  and  beverages,  $565. 

Chemicals  and  allied  products,  $454. 

Clay,  glass  and  stone  products,  $438. 

Metals  and  metal  products  other  than  steel,  $559. 

Tobacco  and  its  manufactures,  $379. 

Vehicles  for  land  transportation,  $546. 

Vehicles  for  water  transportation,  $528. 

Miscellaneous  industries,  $480. 

Hand  trades,  $464. 

The  value  of  manufactured  products  in  a  year, 
now  considerably  over  one  and  one-half  billion  dol- 
lars, increased  two  hundred  sixteen  per  cent,  from 


174         INDUSTRIAL    ARBITRATION 

1890  to  1910.  This  volume  of  manufactured  pro- 
ducts, although  small  compared  with  the  output  of 
the  United  States,  suggests  that  Canada  may  one 
day  have  an  industrial  problem  almost  as  vast  and 
perhaps  as  complex  as  that  of  our  own  country. 

Of  the  total  wage  earners  in  Canada,  fifteen  and 
four-tenths  per  cent,  are  women,  two  and  eight- 
tenths  per  cent,  are  jDcrsons  under  sixteen  and  one 
and  seven-tenths  per  cent,  are  piece  workers.  The 
annual  earnings  of  men  for  all  industrial  occupa- 
tions are  about  four  hundred  sixty  dollars;  of 
women,  two  hundred  sixty-one  dollars ;  of  children 
under  sixteen,  one  hundred  fifty-nine  dollars,  and 
of  piece  workers,  three  hundred  twenty-three  dol- 
lars. 

Canada  had  about  twenty-five  thousand  miles  of 
railways  in  1910  while  the  United  States  had  about 
two  hundred  fifty  thousand  miles.  The  field  crops 
from  about  thirty-three  million  acres  of  land  under 
cultivation  yielded  a  return  of  $565,71 1,600  in  191 1. 
Canada  has  about  two  hundred  million  acres  of  mer- 
chantable timber,  the  pulp  industry  yielding  four 
and  a  quarter  million  dollars  in  191 1  and  all  man- 
ufactured lumber  products,  one  hundred  eighty-five 
million  dollars  in  1910.  The  mineral  production 
rose  from  seventeen  million  dollars  in  1890  to  one 


OFFICIAL    INVESTIGATIONS         175 

hundred  three  millions  in  19 10.  Silver,  nickel,  gold 
and  copper  were  the  leading  hard  minerals.  Coal 
yielded  over  twenty-six  million  dollars  in  191 1. 
Structural  materials,  including  cement,  lime,  gran- 
ite, limestone,  etc.,  added  about  twenty-three  mil- 
lions to  the  mineral  production. 

There  are  about  twenty-three  thousand  public 
schools  in  Canada  with  thirty-seven  thousand  teach- 
ers and  a  million  and  a  quarter  pupils  maintained 
at  an  annual  expenditure  of  about  twenty-eight  mil- 
lion dollars.  The  provincial  governments  have  con- 
trol of  education,  the  funds  being  supplied  by  gov- 
ernment grants  and  local  taxation.  Education  Is 
free  and  more  or  less  compulsory,  but  the  laws  are 
not  strictly  enforced.  Canada  has  three  agricultural 
colleges  and  one  other  college  where  a  department 
of  agriculture  Is  maintained.  There  Is  a  government 
experiment  station  In  the  province  of  Saskatchewan. 

In  191 2,  the  total  Canadian  trade  amounted  to 
jsomething  over  eight  hundred  million  dollars.  Of 
I  the  total  trade,  a  little  less  than  one-third  was  with 
the  British  dominion.  Of  the  British  trade,  Ca- 
nadian Imports  amounted  to  $137,884,696  and 
exports  to  $I70,I55>22I.  Of  the  foreign  trade, 
Canadian  imports  amounted  to  $409,497,886  and 
exports  to  $145,162,029. 


176         INDUSTRIAL    ARBITRATION 

The  total  public  debt  of  Canada  has  grown  from 
$129,743,432  in  1873  to  $508,338,591  in  1912. 

These  facts  go  to  show  the  state  of  industry  in 
Canada  and  in  some  measure,  at  least,  reveal  the 
contrast  in  the  scope  of  industrial  development  in 
Canada  and  the  United  States.  As  stated  hereto- 
fore in  the  chapters  on  Australia  and  New  Zealand, 
the  mere  bigness  of  the  United  States  does  not  fore- 
doom the  operation  here  of  a  law  that  works  else- 
where but  that  bigness  and  other  important  related 
factors,  bearing  on  industrial  conditions — a  mixed 
and  congested  population,  want  of  surplus  land, 
monopolistic  control  of  industry  and  involuntary  un- 
employment due  to  a  variety  of  causes — are  cer- 
tainly not  to  be  ignored. 

But  we  must  not  forget  that  the  Canadian  act 
applies  only  to  public  utilities.  In  the  United  States, 
joint  agreements  in  force  between  the  railroad  man- 
agers and  the  powerful  railroad  unions  and  appeal 
to  the  federal  act  have  been  quite  as  effective  in 
averting  stoppage  of  work  as  the  disputes  investiga- 
tion act  in  the  Dominion.  Some  of  our  severest 
strikes  have  occurred  on  street  railways  but  the  chief 
cause  has  been  recognition  of  the  employees'  union. 
Coal  mines,  covered  by  the  Canadian  act,  are  an- 
other source  of  much  trouble  here  and  it  may  be 


OFFICIAL    INVESTIGATIONS        177 

doubted  whether  any  law  would  prevent  a  strike 
like  that  of  191 3- 19 14  in  the  Colorado  coal  mines, 
where  men  dared  to  oppose  the  state  militia  in  open 
battle.  It  seems  the  inevitable  order  of  things  that 
a  contest,  such  as  this,  where  primary  liberties  are 
withheld  by  industrial  barons,  must  go  on  until  one 
side  is  worn  out  by  the  struggle. 

Lately,  there  has  been  one  notable  strike  of  the 
telegraph  operators  in  the  United  States — that  of 
1907,  involving  fifteen  thousand  men — which  might 
have  been  averted  by  timely  measures  but  there 
have  been  few  strikes  involving  gas,  electric  light, 
water  and  power  plants.  No  law  is  much  needed 
for  these  industries.  Our  troubles,  at  present,  lie  in 
a  different  quarter. 

The  industrial  disputes  investigation  act  of  Can- 
ada was  passed  in  1907  following  a  coal  strike  which 
threatened  a  fuel  famine  in  Saskatchewan  and  Al- 
berta. The  law  was  passed  in  response  to  public 
sentiment  which  demanded  some  form  of  relief. 

Under  the  Canadian  act  it  is  unlawful  for  em- 
ployees in  industries  covered  by  the  act  to  lock  out 
their  workmen  or  for  employees  to  go  on  a  strike 
until  the  appointment  of  an  arbitration  board  and 
investigation  of  the  causes  of  the  controversy  and 
the  filing  of  the  report.     This  report  is  made  to 


178         INDUSTRIAL    ARBITRATION 

the  minister  of  labor,  who  is  charged  with  the  ad- 
ministration of  the  act,  and  must  set  forth  "the 
various  proceedings  and  steps  taken  by  the  board 
for  the  purpose  of  fully  and  carefully  ascertaining 
all  the  facts  and  circumstances  .  .  .  including 
the  cause  of  the  dispute  and  the  board's  recom- 
mendation for  the  settlement  of  the  dispute  accord- 
ing to  the  merits  and  substantial  justice  of  the  case." 

After  the  investigation  and  report  have  been 
made,  either  party  may  refuse  to  accept  the  findings 
and  institute  a  strike  or  lockout. 

It  is  the  duty  of  the  board  when  a  dispute  has 
been  referred  to  it  to  endeavor  to  bring  about  a 
settlement  before  recommendations  are  made.  To 
this  end,  it  may  do  whatever  it  thinks  right  and 
proper  for  inducing  the  parties  to  come  to  a  fair 
and  amicable  settlement,  and  may  adjourn  proceed- 
ings to  allow  the  parties  to  agree  to  terms  of  settle- 
ment. 

Any  employer  declaring  or  causing  a  lockout  con- 
trary to  the  act  is  liable  to  a  fine  of  from  one  hun- 
dred dollars  to  one  thousand  dollars  for  each  day 
that  the  lockout  exists,  and  any  employee  who  goes 
on  a  strike  contrary  to  the  act  is  liable  to  a  fine  of 
not  less  than  ten  dollars  nor  more  than  fifty  dollars 
for  each  day  that  he  is  on  a  strike.     Inciting,  en- 


OFFICIAL    INVESTIGATIONS         179 

couraging  or  aiding  an  employer  to  continue  a  lock- 
out is  also  punishable  by  fine. 

Parties  may  agree  in  advance  to  be  bound  by  the 
recommendations  of  the  board,  in  which  case  rec- 
ommendations are  made  the  rule  of  a  court,  on  ap- 
plication of  either  party,  and  enforceable  as  such. 
Parties  outside  the  operation  of  the  act  may  agree 
to  come  under  it. 

Either  party  to  a  dispute  may  make  application 
to  the  minister  of  labor  for  the  appointment  of  a 
board  of  conciliation  and  investigation,  but  ten  per- 
sons must  be  involved.  The  act  applies  to  com- 
panies or  corporations  employing  ten  or  more  per- 
sons engaged  in  mining,  transportation  by  steam, 
electric  railroads  or  steamships,  telegraph,  tele- 
phone, gas,  electric  light,  water  and  power  business. 
Within  fifteen  days  after  application  for  the  ap- 
pointment of  a  board,  three  members  are  appointed 
by  the  minister  of  labor,  one  each  on  recommenda- 
tion of  each  party  and  one,  the  chairman,  upon 
recommendation  of  the  other  two. 

Disputes  coming  under  the  act  may  Involve 
wages,  hours  of  employment,  sex,  age  or  qualifica- 
tion of  employees,  the  employment  of  children,  ma- 
terials, customs  and  usage,  and  interpretation  of 
agreements. 


l8o         INDUSTRIAL    ARBITRATION 

Application  for  conciliation  and  investigation 
must  set  forth  the  names  of  the  parties  to  the  dis- 
pute, the  nature  and  cause  of  the  dispute,  an  esti- 
mate of  the  number  of  persons  affected,  and  any 
efforts  made  by  the  parties  themselves  to  adjust  the 
dispute.  If  the  application  is  made  by  the  employ- 
ees, who  are  members  of  a  trade  union,  it  must 
be  signed  by  the  officers  duly  authorized  by  a  ma- 
jority vote,  except  where  a  dispute  involves  employ- 
ees in  more  than  one  province,  it  may  be  signed 
by  the  chairman  and  secretary  of  the  executive  com- 
mittee without  a  vote.  Further,  if  made  by  the 
employees,  it  must  contain  a  statutory  declaration 
that,  failing  an  adjustment  of  the  dispute,  it  is  the 
belief  of  the  declarant  that  a  strike  or  lockout  will 
be  called,  and  that  the  necessary  authority  to  call 
a  strike  has  been  obtained,  which  amounts  to  a  ma- 
jority vote  of  the  membership.  Where  the  dispute 
affects  employees  in  more  than  one  province,  the 
chairman  and  secretary  of  the  strike  committee  may 
make  a  statutory  declaration  of  their  authority  to 
call  a  strike  in  the  absence  of  a  majority  vote  of  the 
membership. 

Employers  and  employees  are  required  to  give 
at  least  thirty  days'  notice  to  the  adverse  party  of 
intended   changes   affecting  conditions   of   employ- 


OFFICIAL    INVESTIGATIONS        i8i 

ment,  with  respect  to  wages  and  hours.  If  such 
proposed  change  results  In  a  dispute,  neither  of  the 
parties  affected  shall  alter  conditions  of  employment 
until  the  dispute  has  been  finally  dealt  with  by  a 
board. 

A  majority  of  the  board  may  make  an  award;  its 
proceedings  are  conducted  in  public,  except  by  spe- 
cial arrangement,  and  its  recommendations  are  pub- 
lished in  the  Labor  Gazette.  Members  of  the  board 
receive  twenty  dollars  a  day  for  each  day's  services, 
and  the  two  members  first  appointed  receive  five 
dollars  a  day  for  not  exceeding  three  days,  during 
the  time  they  are  engaged  in  selecting  a  third  mem- 
ber. 

From  March,  1907,  to  March,  1913,  a  total  of 
one  hundred  forty-five  disputes  were  referred  under 
the  act.  In  eighteen  cases,  the  boards  were  unsuccess- 
ful In  averting  or  ending  strikes.  Of  the  one  hun- 
dred forty-five  disputes  referred,  fifty-one  occurred 
In  mines,  eighty-five  in  transportation  and  communi- 
cation industries,  four  among  civic  employees  and 
five  In  cases  other  than  mines  and  public  utilities.^ 

The  Grand  Trunk  railway  strike  of  1910  was 
marked  by  violence  and  disorder,  resulting  in  blood- 


^  Sixth  Report  of  the  Register  of  Boards  of  Conciliation  and 
Investigation,  p.  15. 


i82         INDUSTRIAL    ARBITRATION 

shed,  dynamiting  and  Incendiarism.  Troops  were 
called  out  in  some  places.  Through  intervention  of 
the  government,  the  strike  ceased  on  August  second, 
having  continued  from  July  twelfth.  An  eighteen 
per  cent,  advance  in  wages  was  obtained  by  the 
strikers. 

Nine  thousand  machinists  employed  by  the  Ca- 
nadian Pacific  railroad  were  on  strike  during  the 
summer  and  fall  of  1908.  Two  reports  were  filed 
by  the  official  investigators  of  the  government,  an 
instance  of  the  weakness  of  the  act.  Experience 
has  shown  there  is  little  to  be  gained  from  public 
opinion  where  there  is  a  divided  report  of  an  in- 
vestigating board. 

The  most  important  Canadian  strike  during  1909 
was  that  of  the  Alberta  coal  miners.  Three  thou- 
sand were  out  from  April  to  August. 

Twenty-two  disputes  were  referred  under  the  act 
during  the  year  ending  March  31,  191 3.  In  four 
cases,  boards  of  conciliation  and  investigation  were 
unsuccessful  in  averting  strikes.  During  this  year 
one  dispute  involved  the  workers  in  coal  mines,  three 
those  in  metal  mines,  nine  occurred  on  railways,  five 
on  street  railways,  one  in  shipping,  one  among  tele- 
phone workers,  one  among  civic  employees  and  one 
among  other  than  mines  and  public  utilities. 


OFFICIAL    INVESTIGATIONS         183 

The  total  number  of  employees  affected  by  the 
one  hundred  forty-five  disputes  from  March  22, 
1907,  to  March  31,  191 3,  was  approximately  one 
hundred  eighty-six  thousand.  During  the  year 
1912-13,  a  dispute  between  the  Canadian  Pacific 
railway  and  its  telegraphers,  growing  out  of  a  de- 
mand for  fifteen  per  cent,  increase  in  wages,  in- 
volved directly  one  thousand  eight  hundred  employ- 
ees and  indirectly  affected  eight  thousand  others. 
The  board  gave  an  increase  of  ten  per  cent,  and 
when  a  strike  was  threatened  a  compromise  was 
finally  reached  by  which  the  men  received  an  in- 
crease of  twelve  per  cent.  The  four  disputes  in 
which  boards  of  investigation  and  conciliation  were 
unsuccessful  during  1912-13  involved  ninety  coal 
handlers  employed  at  Port  Arthur,  Ontario,  where 
violence  occurred;  a  dispute  between  the  employers 
of  a  mining  company  in  British  Columbia  and  its 
employees,  involving  three  hundred  men;  a  dispute 
between  several  mining  companies  In  Ontario  and 
their  employees,  numbering  four  hundred  sixty-five, 
and  a  dispute  between  the  freight  handlers,  clerks, 
checkers  and  other  employees  of  the  Canadian  Paci- 
fic railroad  and  the  company.  Of  these  four  dis- 
putes, two  awards  were  repudiated  by  the  employers 
and  two  awards  repudiated  by  the  employees. 


i84         INDUSTRIAL    ARBITRATION 

Five  years'  experience  under  the  Canadian  act  has 
shown  that  public  opinion  is  futile  to  avert  a  strike, 
particularly  in  those  cases  In  which  there  is  a  di- 
vided report  of  an  Investigating  board.  But  the 
act  has  proved  reasonably  successful  in  averting 
strikes  and  lockouts,  however  great  the  hardships 
may  have  been  upon  parties  affected  by  It,  Trade 
economists  uphold  the  law  because  It  gives  the  em- 
ployer time  to  fortify  himself  with  strikebreakers 
and  escape  penalty  contract,  pending  Investigation.^ 
Because  boards  are  temporary  and  therefore  inex- 
perienced, honest  errors  have  occurred  in  several 
Instances.^  Further  objection  is  made  to  the  act 
because  it  is  incumbent  upon  the  adverse  party  to 
prosecute  violations  of  the  statute.  The  employers 
want  the  government  to  assume  the  duty  of  bringing 
prosecution.*  The  courts  have  held  that  a  labor  or- 
ganization has  no  right  to  make  a  legal  and  enforce- 
able contract  and  this  decision  has  weakened  the 
law.  Canadian  trade  unions  had  a  membership  of 
about  one  hundred  sixty  thousand  in  1912. 

In  a  report  on  the  Industrial  disputes  investiga- 
tion act  of  1907,  Sir  George  Askwith,  K.  C.  B., 
chief  Industrial  commissioner  of  Great  Britain,  who 


^  Bulletin  of  the  Bureau  of  Labor,  No.  86,  p.  18. 

•  Ibid.,  p.  19. 

*  Ibid.,  p.  19. 


OFFICIAL    INVESTIGATIONS        185 

visited  Canada  during  the  summer  of  1912  to  make 
an  official  inquiry  on  behalf  of  the  British  govern- 
ment, found  the  employers  "generally  favorable  to 
the  act,  certainly  to  its  principle  and  policy." 

Among  the  criticisms  suggested  by  employers  was 
one  that  the  recommendations  of  the  boards  should 
be  brought  fully  before  the  men  for  their  considera- 
tion. Other  criticisms  were  that  partisans  should 
not  be  appointed  to  the  boards ;  that  penalties  should 
be  enforced  by  the  government;  that  unions  should 
be  incorporated  and  be  responsible  for  penalties  or 
damages,  and  that  there  should  be  a  method  of  in- 
terpretation of  recommendations  and  settlements. 

For  the  five  years,  1907-12,  one  hundred  seven- 
teen industrial  disputes  were  reported  as  having 
come  under  the  operation  of  the  Canadian  act.  In 
the  same  years,  there  was  a  total  of  one  thousand 
.fifty-four  strikes  in  the  United  Kingdom,  an  aver- 
age of  more  than  two  hundred  a  year. 

"To  bring  more  than  two  hundred  disputes  under 
the  operation  of  such  an  act  in  this  country,"  said 
the  report,  "would  mean  a  very  extended  govern- 
ment department  with  a  large  supply  of  conciliators 
available  to  act  as  members  of  the  boards. 

"It  will  have  been  gathered  from  the  preceding 
explanation  of  the  working  of  the  act,"  the  report 
went  on  to  say,  "where  it  was  frankly  accepted  as 
a  means  of  preventing  disputes,  it  has  worked  ex- 


!i86        INDUSTRIAL    ARBITRATION 

tremely  well,  but  where,  for  reasons,  some  apparent 
and  others  which  can  only  be  guessed  at,  its  intro- 
duction has  been  resented,  it  has  not  succeeded  to 
the  same  extent.  In  such  latter  cases  where,  by  the 
imposition  of  penalties,  efforts  have  been  made  to 
enforce  the  act,  the  results  have  not  been  satisfac- 
tory. 

"I  consider  that  the  forwarding  of  the  spirit  and 
intent  of  conciliation  is  the  more  valuable  portion 
of  the  Canadian  act,  and  that  an  act  on  these  lines, 
even  If  the  restrictive  features  which  aim  at  delay- 
ing stoppage  until  after  inquiry  were  omitted,  would 
be  suitable  and  practicable  in  this  country,"  Sir 
George  Askwith  said  In  concluding  his  report. 
"Such  an  act  need  not  necessarily  be  applied  in  all 
cases,  but  neither  ought  it  be  confined  to  services  of 
public  utility.  It  might  be  generally  valuable  in 
cases  where  the  public  were  likely  to  be  seriously 
affected.  Without  the  restrictive  features  it  would 
give  the  right,  not  only  to  conciliate,  but  fully  to 
investigate  the  matters  In  dispute,  with  similar  pow- 
ers in  regard  to  witnesses,  production  of  documents 
and  inspection,  as  are  vested  in  a  court  of  record 
in  civil  cases,  with  a  view,  if  conciliation  fails,  to 
recommendations  being  made  as  to  what  are  be- 
lieved to  be  fair  terms. 

"Such  an  act,  while  not  insuring  complete  absence 
of  strikes  and  lockouts,  would  be  valuable,  in  my 
opinion,  alike  to  the  country  and  to  employers  and 
employed." 

While  the  American  Federation  of  Labor  Is  not 
on  record  against  the  compulsory  investigation  of 
strikes  and  lockouts,  the  Denver  convention  of  1908 


OFFICIAL    INVESTIGATIONS        187 

'did  condemn  the  Townsend  bill  which  the  resolution 
asserted  "purports  to  be  a  measure  in  the  direction 
of  compulsory  investigation  of  strikes,  but  which 
is  really,  in  effect,  the  forerunner  of  compulsory 
arbitration,  with  all  its  evils.     .     .     ."^ 

As  late  as  191 2,  the  American  Federation  of  La- 
bor had  not  declared  its  position  on  the  Canadian 
industrial  disputes  investigation  act.  In  the  Roches- 
ter convention  of  1912,  however.  Fraternal  Delegate 
Tolin  W.  Bruce,  representing  the  Canadian  Trades 
and  Labor  Congress,  spoke  of  the  law,  in  an  ad- 
dress to  the  convention. 

"When  the  act  was  first  proposed,"  Bruce  said, 
"the  Trades  and  Labor  Congress  favored  it,  al- 
though there  were  some  who  realized  the  serious- 
ness of  the  proposition  and  wanted  them  to  go  easy 
in  indorsing  it.  Now  we  find  that  after  a  few  years 
of  operation,  the  act  has  not  worked  out  to  the  sat- 
isfaction of  the  wage  workers.  When  an  appeal  is 
made  to  government  for  an  investigation  under  the 
act,  the  law  will  apply,  if  you  have  a  strong  organ- 
ization behind  you ;  but  if  you  have  a  weak  organi- 
zation and  are  not  in  a  position  to  enforce  your 
demands,  you  will  find  the  board  is  refused.  There 
have  been  instances  where  wage  workers  have  been 
able  to  get  boards  under  the  act,  but  the  employer 
has  not  been  willing  to  live  up  to  the  award.  Even 
when  we  find  a  weak  organization  of  the  Canadian 
element  appealing  for  a  board,  it  is  not  granted. 


'Proceedings  of  A.  F.  L.,  1907,  p.  177, 


i88        INDUSTRIAL   ARBITRATION. 

After  an  exhaustive  hearing  of  those  most  directly 
concerned  in  the  operation  of  this  act,  the  Congress 
by  a  very  large  vote  determined  to  seek  the  repeal 
of  the  act,  or  seek  a  better  administration  of  it.  We 
stated  that  we  were  not  opposed  to  arbitration  and 
conciliation,  if  it  were  conducted  with  the  intention 
of  arbitrating  and  conciliating  the  disputes  regard- 
less of  the  organizations."^ 

The  1909  convention  of  the  Western  Federation 
of  Labor  and  the  United  Mine  Workers  both  con- 
demned the  Canadian  law.  The  U.  M.  of  A.  de- 
nounced it  as  an  "interference  with  our  right  to  quit 
work."  The  constitution  of  the  Western  Federation 
of  Labor  forbids  all  forms  of  agreements  with  em- 
ployers except  a  wage  scale.  This  organization  is 
strongly  Socialistic  and  the  Socialist  party  is  op- 
posed to  bolstering  up  the  wage  system  by  "facil- 
itating agreements  and  preventing  strikes." 

So  far.  South  Africa  presents  the  only  other  In- 
stance of  an  attempt  to  prevent  strikes  and  lockouts 
before  an  official  investigation  and  reports  on  the 
merits  of  the  controversy.  Several  thousand  gov- 
ernment railway  employees  were  on  a  strike  from  the 
middle  of  April  to  the  middle  of  May,  1909,  In  Na- 
tal, South  Africa.  The  strikers  refused  an  offer  of 
the  government  to   inquire  Into   their  grievances. 


'A,  F.  L.  Proceedings,  1912,  p.  217. 


OFFICIAL    INVESTIGATIONS        189 

Outside  workers  were  successful  in  breaking  the 
strike.  In  the  same  year  the  Transvaal  Parliament 
passed  an  act  modeled  closely  after  the  Canadian 
industrial  disputes  investigation  act.  A  department 
of  labor  was  created  in  the  colony  to  aid  in  the  pre- 
vention of  strikes  among  employees  or  lockouts  by 
employers  and  the  settlement  of  industrial  disputes 
by  conciliation  after  investigation. 

The  act  provides  that  "no  alteration  shall  be  made 
by  any  employer  in  relation  to  wages,  allowances, 
or  other  remuneration  of  his  employees  or  the  price 
to  be  paid  to  them  in  respect  to  their  employment, 
or  to  the  hours  of  their  work,  unless  one  month's 
notice  at  least  of  the  proposed  alteration  be  given 
to  all  employees  who  would  be  affected  thereby," 
and  "no  demand  shall  be  made  upon  any  employer 
by  any  of  his  employees  to  affect,  within  less  than 
one  month,  any  such  alteration." 

Lockouts  and  strikes  are  illegal  until  investigated 
by  a  board  of  conciliation  and  investigation  and 
until  one  month  has  elapsed  after  the  report  has 
been  made  public.  A  fine  of  one  hundred  pounds 
daily  against  the  employer  and,  in  default  of  fine, 
imprisonment  not  exceeding  twelve  months,  is  pre- 
scribed for  a  violation  of  the  act.  A  fine  of  from 
ten  pounds  to  fifty  pounds  daily  or  imprisonment 


I90        INDUSTRIAL    ARBITRATION 

against  employees  Is  prescribed  for  a  violation  of 
the  act.  Inciting  strikes  or  lockouts  is  punishable 
by  a  fine  of  from  fifty  pounds  to  two  hundred  fifty 
pounds  or  by  imprisonment.  Ten  employees  must  be 
aflfected  to  make  the  act  operative  and  application 
for  conciliation  and  investigation  may  be  made  by 
either  party.    The  other  party  is  bound  to  reply. 


CHAPTER  VIII 

INITIAL  EXPERIMENTS  AT  HOME 

STRIKES  called  by  the  journeyman  bakers  of 
New  York  in  1741  and  by  the  journeyman 
shoemakers  of  Philadelphia  in  1 796,  1 798  and  1 799 
comprised  the  most  serious  industrial  troubles  in  the 
United  States  before  the  beginning  of  the  last  cen- 
tury. As  compared  to  the  present-day  strike,  they 
were  unimportant.  There  was  a  strike  of  the  New 
York  sailors  in  1802  and  another  strike  by  the  jour- 
neyman shoemakers  of  Philadelphia  in  1805.  The 
sailors  gave  an  organized  demonstration  in  the 
streets  which  was  broken  up  by  constables.  The 
leader  of  the  strike  was  arrested  and  punished,  just 
as  strike  leaders  are  arrested  and  sometimes  pun- 
ished to-day  for  no  other  offense  than  resisting  the 
wishes  and  will  of  an  employer. 

Minor  strikes  by  shoemakers,  tailors,  hatters, 
workmen  in  the  building  trades  and  unskilled  labor- 
ers occurred  during  the  subsequent  years  up  to  1835 
when,  according  to  a  report  of  the  Commissioner 

191 


192         INDUSTRIAL    ARBITRATION 

of  Labor  (1901,  p.  721),  "strikes  had  become  so 
numerous  as  to  call  forth  remonstrant  comments 
from  the  public  press."  Several  strikes  for  the  ten- 
hour  day  occurred  between  1830  and  1840.  A 
strike  on  the  Massachusetts  railways  occurred  in 
1834  when  there  were  riots  which  it  required  the 
militia  to  put  down.  Rioting  and  destruction  of 
property  occurred  in  the  strike  of  the  Philadelphia 
brickmakers  in  1843. 

Prior  to  i860  there  was  no  well  established 
method  for  the  settlement  of  industrial  disputes  in 
this  country.  Industrial  controversies,  however, 
were  frequent,  and  strikes  had  become  common. 
The  first  instance  of  arbitration  in  the  United  States 
is  recorded  as  having  taken  place  early  In  the  eight- 
eenth century  in  the  copper  mines  of  Connecticut. 
The  first  trade  agreement  ever  signed  in  this  coun- 
try, February  3,  1865,  was  the  result  of  action  taken 
by  the  Sons  of  Vulcan,  a  trade  union  newly  organ- 
ized in  the  iron  industry.  Another  agreement  was 
signed  July  23,  1867.  Various  departments  of  the 
iron  business  were  included  in  trade  agreements 
from  time  to  time,  and  practically  governed  wages 
in  the  rolling-mills  west  of  the  Allegheny  Moun- 
tains. 

It  was  not  until  the  close  of  the  Civil  War  when 


INITIAL    EXPERIMENTS    AT    HOME       193 

improved  machinery  began  to  displace  the  old-fash- 
ioned shoemaker's  shop,  and  the  old-fashioned  shoe- 
maker took  a  new  quarter  in  his  master's  factory 
that  organization  began  in  the  boot  and  shoe  indus- 
try. The  Knights  of  St.  Crispin  was  the  first  of 
these. 

On  July  21,  1870,  a  board  of  industrial  arbitra- 
tion was  established  at  Lynn,  Massachusetts,  the  cen- 
ter of  the  shoe  manufacturing  industry  in  the  United 
States.  The  board  consisted  of  five  members  ap- 
pointed by  the  Knights  of  St.  Crispin  and  five 
members  appointed  by  the  manufacturers.  A  scale 
of  prices  agreed  upon  within  two  days  was  ratified 
by  both  parties. 

This  contract  expired  in  1872  and  the  manufac- 
turers spurned  all  offers  of  another  conference.  The 
employees  went  out  on  a  strike  but  gradually  re- 
turned to  work  on  the  manufacturers'  terms  and  the 
Knights  of  St.  Crispin  temporarily  passed  out  of 
existence  as  a  factor  in  this  industry.  The  Shoe- 
makers' League  was  then  organized  but  it  proved 
ineffectual  and  the  Knights  of  St.  Crispin  was  re- 
vived with  a  board  of  arbitration  which  really  had 
no  more  than  conciliatory  powers.  It  was  successful, 
however,  in  averting  open  breaches  in  several  hun- 
dred cases.    In  1878  the  manufacturers  made  a  final 


194         INDUSTRIAL    ARBITRATION 

stand  against  the  Knights  of  St.  Crispin,  and  the 
organization  soon  disintegrated. 

Meantime  had  occurred  the  great  strikes  of  1877 
on  the  Baltimore  and  Ohio,  Pennsylvania  and  other 
railroads  which  resulted  in  violence  and  made  nec- 
essary the  calling  of  troops.  There  was  a  strike  on 
the  Gould  roads  in  1885. 

In  1885  a  joint  board  of  arbitration,  consisting 
of  seven  members  from  district  assembly  No.  ^'j, 
Knights  of  Labor,  and  seven  members  representing 
the  manufacturers,  was  established.  Before  the  new 
scale  became  operative  the  workmen,  who  had  been 
growing  more  and  more  dissatisfied  because  of  the 
striving  for  trade  autonomy,  protested  against  the 
continuance  of  the  board.  As  a  consequence  of  the 
workmen's  threats  to  withdraw  from  the  Knights  of 
Labor  If  their  wishes  were  not  realized  the  mem- 
bers of  the  conference,  representing  the  Knights  of 
Labor,  were  withdrawn  and  the  wage  board  came  to 
an  end. 

The  Knights  of  Labor,  now  almost  extinct,  was  an 
Industrial  organization  of  which  the  district  assem- 
bly was  a  unit.  It  did  not  recognize  the  principle  of 
trade  autonomy  but  sought  to  join  the  workers  of 
all  trades  together  without  respect  to  their  particular 
crafts.    It  declined  rapidly  after  the  organization  of 


INITIAL    EXPERIMENTS    AT    HOME       195 

the  American  Federation  of  Labor,  which  was  based 
on  the  principle  of  trade  autonomy  and  a  loose  fed- 
eration pf  national  and  international  trade  unions. 

Before  the  rise  of  the  American  Federation  of 
Labor,  the  Knights  of  Labor  was  the  most  power- 
ful labor  organization  in  this  country.  It  was 
founded  upon  the  principle  of  industrial  unionism, 
the  fundamental  idea  of  the  Industrial  Workers  of 
the  World  to-day,  rather  than  trade  unionism,  which 
the  American  Federation  adopted  and  which  ac- 
counts for  its  rise  and  the  decline  of  the  Knights 
of  Labor. 

But  the  Knights  of  Labor  demanded  "the  enact- 
ment of  laws  providing  for  arbitration  betweerx 
employers  and  employees  and  to  enforce  the  deci- 
sion of  the  arbitrators." 

"It  should  be  the  law  in  every  state,"  said  T.  V. 
Powderly,  Master  Workman  of  the  Knights  of  La- 
bor, in  commenting  on  the  Homestead  strike,^  "that 
in  disputed  cases  the  employer  should  be  obliged 
to  select  two  arbitrators  and  the  employees  two, 
these  four  to  select  a  fifth ;  this  arbitration  commis- 
sion to  have  access  to  all  books,  papers  and  facts 
bearing  on  the  question  at  issue  from  both  sides. 

"An  established  board  of  arbitration,  appointed 
by  the  governor  or  other  authority,"  said  Powderly, 
"is  simply  no  board  of  arbitration  at  all,  for  thfi 

^  North  American  Review,  September,  1892. 


196         INDUSTRIAL    ARBITRATION 

reason  that  the  workmen  would  have  no  voice  in  its 
selection  and  the  other  side,  having  all  the  money 
and  influence,  would  be  tempted  to  fix  such  a  board 
preparatory  to  engaging  in  a  controversy  with  work- 
ing men.  For  either  side  to  refuse  to  appoint  its 
arbitrators  should  be  held  to  be  cause  for  their  ap- 
pointment by  the  governor  of  the  state. 

"No  strike  or  lockout  should  be  entered  upon 
before  the  decision  of  the  board  of  arbitrators. 
Provisions  for  appeal  from  the  decision  of  the  arbi- 
trators should  be  made  in  order  to  prevent  intimida- 
tions or  money  from  influencing  the  board." 

A  strike  In  the  Brockton  factories  Involving  nearly 
six  thousand  operatives  occurred  In  the  early  sixties, 
about  the  time  the  Lynn  joint  board  was  estab- 
lished. After  some  negotiations,  a  joint  board  con- 
sisting of  six  members  from  each  side  was  estab- 
lished, and  it  was  agreed  that  In  case  of  a  tie  each 
side  should  select  a  disinterested  person  and  these 
two  a  third — the  decision  of  the  three  to  be  final. 
This  latter  board  reached  an  agreement  after  the 
men  had  been  idle  for  five  weeks  and  they  returned 
to  work. 

Attempts  at  arbitration  in  the  anthracite  coal 
fields  of  Pennsylvania  occurred  simultaneously  with 
the  arbitration  at  Lynn  and  Brockton,  Massachu- 
setts. 

The  first  law  passed  In  the  United  States  provid- 


INITIAL    EXPERIMENTS    AT    HOME       197 

ing  for  industrial  arbitration  was  an  act  of  the 
Maryland  legislature  of  April  i,  1878.  It  provided 
only  for  local  arbitration.  No  permanent  agency 
was  established  to  carry  out  the  provisions  of  the 
statute. 

A  New  Jersey  law  of  1880"  permitted  a  majority 
of  employees  in  any  manufacturing  establishment 
to  propose  to  submit  any  matters  in  controversy  to 
arbitration.  At  the  option  of  the  employer  a  second 
arbitrator  might  be  named  by  the  employer,  the 
two  to  select  a  third.  A  board  so  constituted  had 
power  to  hear  and  examine  the  case  and  make  a 
written  decision  "binding  upon  both  parties." 

A  later  act  of  1886^  provided  that  a  controversy 
between  employers  and  employees,  by  mutual  con- 
sent, might  be  submitted  to  a  board  of  five  arbi- 
trators, two  named  by  the  employees  and  two  by 
the  employer,  the  four  to  select  a  fifth.  The  decision 
of  such  a  board  was  made  "binding  and  conclusive 
between  the  parties." 

Pennsylvania  in  1883  provided  for  "voluntary 
trade  tribunals."  Texas  provided  for  similar  boards 
of  five  persons  by  an  act  of  1895.* 

Thirty-two  states  of  the  union  have  enacted  leg- 


'  Public  Laws  of  1880,  Ch.  138. 

'Laws  of  1886,  p.  315. 

'  Laws  of  1894-189.5,  Ch.  379. 


198         INDUSTRIAL    ARBITRATION 

islatlon  in  some  form  providing  for  the  conciliation 
and  arbitration  of  industrial  disputes.  Sixteen  of 
the  forty-eight  states  have  done  nothing  to  provide 
for  industrial  arbitration.  It  is  noteworthy  that 
eight  of  the  sixteen  states  are  in  the  South — Vir- 
ginia, Kentucky,  Tennessee,  Arkansas,  Florida, 
North  Carolina,  South  Carolina  and  Mississippi. 
Oregon,  a  state  that  otherwise  has  been  foremost 
in  progressive  legislation,  is  one  of  the  sixteen.  The 
other  seven  are  Delaware,  West  Virginia,  Rhode 
Island,  Arizona,  New  Mexico,  South  Dakota  and 
Wyoming. 

Four  of  the  thirty-two  states.  New  Jersey,  Mich- 
igan, Indiana  and  North  Dakota,  have  repealed^ 
their  laws  on  industrial  conciliation  and  arbitration, 
and  no  one  of  these  states  at  present  has  any  law 
in  operation  worthy  the  name  of  an  industrial  arbi- 
tration statute.  Although  the  constitution  of  Wyo- 
ming, adopted  in  1890  when  that  state  entered  the 
Union,  gave  the  state  legislature  power  to  establish 
courts  of  arbitration  from  which  appeals  to  the  Su- 
preme Court  were  provided,  no  action  has  been 
taken  under  the  clause. 

Legislation    for   industrial   arbitration   has   taken 


*  Indiana  repealed  its  original  act  in   1911,  but  a  new  act 
was  passed  in  1915.    It  is  discussed  on  page  258  et  seq. 


INITIAL    EXPERIMENTS    AT    HOME       199 

two  distinct  forms  in  this  country.  One  is  the  per- 
manent state  board  of  arbitration  that  continues 
from  year  to  year.  The  other  form  is  voluntary 
arbitration  by  local  boards  constituted  for  each  dis- 
pute as  it  arises.  In  some  states,  labor  commission- 
ers are  vested  with  powers  similar  to  those  exercised 
by  state  boards,  yet  otherwise  are  limited  by  restric- 
tions imposed  by  laws  providing  for  local  arbitra- 
tion. 

The  seventeen  states  having  permanent  boards 
and  the  dates  of  their  creation  by  statute  are  as 
follows:  Massachusetts  and  New  York,  1886;  Mis- 
souri, 1889;  California,  1891;  Ohio,  1893;  Louisi- 
ana, 1894;  Illinois,  Connecticut,  Minnesota  and 
Montana,  1895;  Utah,  1896;  Oklahoma,  1907; 
Maine,  1909;  Alabama,  191 1;  Vermont,  191 2;  Ne- 
braska and  New  Hampshire,  191 3. 

Pennsylvania,  Nevada,  Colorado,  Idaho,  Iowa, 
Maryland,  Texas,  Washington  and  Kansas — nine 
states — provide  for  local  boards. 

Nine  of  the  seventeen  states  having  permanent 
state  boards  of  arbitration  also  provide  for  local  and 
voluntary  boards.  The  nine  states  are  California, 
Maine,  Massachusetts,  Alabama,  Minnesota,  Mon- 
tana, Nebraska,  New  York  and  Ohio. 

New  York  had  a  detached  and  independent  state 


200        INDUSTRIAL    ARBITRATION 

board  of  arbitration  similar  to  the  boards  of  other 
states  until  1901,  when  a  bureau  of  mediation  and 
arbitration  was  created  in  the  department  of  labor. 
The  state  board  of  mediation  and  arbitration  con- 
sists of  a  chief  mediator  and  two  other  officers  of 
the  department  of  labor  from  time  to  time  desig- 
nated by  the  commissioner. 

The  Wisconsin  Industrial  Commission,  created  by 
an  act  of  191 1,  Is  charged  with  the  duty  of  pro- 
moting voluntary  arbitration  and  to  do  so  may  ap- 
point temporary  boards,  prescribe  rules  of  proce- 
dure, conduct  investigations  and  hearings.  A  deputy 
of  the  commission  is  known  as  chief  mediator. 

New  Jersey,  the  second  state  In  the  union  to  leg- 
islate upon  this  subject,  created  a  state  board  of 
arbitration  In  1892  and  made  provision  for  local 
boards  under  license  of  the  county  judge.  Appeals 
from  local  boards  to  the  state  board  were  allowable 
and  the  latter  was  given  the  power  of  mediation  but 
not  investigation.  An  amendment  of  1895  named 
three  persons  to  serve  on  the  state  board,  fixed  their 
salaries  and  terms  of  office. 

The  act  of  1892  and  Its  amendments  were  re- 
pealed In  1908.     The  present  commissioner  of  labor® 


Lewis  T.  Bryant,  New  Jersey  Commissioner  of  Labor. 


INITIAL    EXPERIMENTS    AT    HOME       201 

is  authority  for  the  statement  that  the  board  "per- 
formed little  or  no  service  during  the  entire  time  it 
was  in  existence." 

Michigan  first  provided  for  industrial  arbitration 
by  a  state  board  in  1889.  The  board  had  powers 
of  mediation  and  investigation  at  its  option  but  no 
provision  was  made  for  the  immediate  publication 
of  its  findings.  In  1903  an  amendment  made  it  the 
duty  of  the  mayor  of  any  city,  the  supervisor  of  any 
township  or  the  president  of  any  village  to  furnish 
promptly  to  the  state  board  information  of  threat- 
ened or  actual  strikes  or  lockouts.  An  amendment 
of  1909  fixed  the  salaries  of  the  arbitrators.  No 
appointments  were  made  under  the  act  until  1897 
and  the  statute  was  repealed  by  the  legislative  ses- 
sion of  191 1.  It  is  said  that  the  board  did  not  meet 
with  favor  for  the  reason  that  its  powers  were  used 
for  political  purposes  and  for  that  reason  was  abol- 
ished. 

At  the  first  session  of  the  North  Dakota  legisla- 
ture, after  the  adoption  of  its  constitution,  in  an 
act  prescribing  the  duties  of  the  commissioner  of 
agriculture  and  labor,  It  was  made  his  duty  to 
mediate  between  employers  and  employees  when  re- 
quested to  do  so  by  fifteen  employees  or  the  em- 


202         INDUSTRIAL    ARBITRATION 

ployer  in  a  difference  threatening  a  strike  or  lock- 
out involving  twenty-five  or  more  workmen.^ 

Until  the  enactment  of  the  statute  of  191 5,  un- 
certainty marked  the  status  of  the  Indiana  law  with 
reference  to  Industrial  arbitration.  The  labor  com- 
mission act  was  passed  in  1897.  It  provided  for  the 
appointment  by  the  governor  of  two  electors,  not  of 
the  same  political  party,  one  representing  the  em- 
ployees and  one  the  employers,  not  less  than  forty 
years  of  age. 

It  was  the  duty  of  this  commission  upon  receiving 
information  "of  the  existence  of  any  strike,  lockout, 
boycott  or  other  labor  complication"  in  the  state  In- 
volving at  least  fifty  persons,  to  go  to  the  scene  of 
the  complication  and  offer  their  services  as  media- 
tors. Mediation  failing,  they  were  required  to  "en- 
deavor to  Induce  the  parties  to  submit  their  differ- 
ences to  arbitration,"  either  under  the  provisions  of 
the  act  or  as  they  might  elect. 

The  commission  and  the  judge  of  the  circuit  court 
where  the  controversy  arose  were  constituted  the 
board  of  arbitration  under  the  act,  but  two  persons, 


'This  act  is  not  included  in  the  text  of  state  laws  pub- 
lished by  the  Bureau  of  Labor  in  1913,  and  it  does  not  seem 
to  have  been  included  in  the  compilation  of  the  North  Dakota 
laws  in  1895,  1899  and  1905.  However,  a  careful  examination 
of  the  North  Dakota  statutes  did  not  show  that  it  has  ever 
been  repealed, 


INITIAL    EXPERIMENTS    AT    HOME       203 

one  representing  the  employers,  and  one  represent- 
ing the  employees,  might  be  added.  This  board  had 
power  to  issue  subpoenas  for  witnesses  and  to  hold 
public  or  private  hearings.  A  majority  of  the  board 
might  make  an  award. 

Either  party  violating  the  award  might  be  pun- 
ished for  contempt,  but  only  in  case  of  "willful  and 
contumacious  disobedience"  did  the  punishment  ex- 
tend to  imprisonment. 

Provision  was  made  under  the  act,  upon  applica- 
tion of  any  employer  and  twenty-five  employees  be- 
fore an  open  rupture  had  occurred,  for  arbitration 
of  their  differences  by  the  circuit  judge  and  labor 
commissioners. 

Investigation  of  facts  attending  any  disagreement 
was  compulsory  upon  the  labor  commission  in  the 
event  mediation  failed  and  the  parties  could  not 
agree  to  arbitration.  In  such  investigation,  the  com- 
mission was  entitled  to  the  assistance  of  the  attorney 
general  and  had  full  power  to  issue  subpoenas  for 
the  attendance  of  witnesses.  Failure  of  witnesses 
to  attend  and  testify  was  punishable  by  the  circuit 
judge  as  contempt  of  court. 

Upon  the  completion  of  the  investigation  and  re- 
port to  the  governor,  the  commissioner  was  required, 
"ynless  he  shall  perceive  a  good  reason  to  the  con- 


204         INDUSTRIAL    ARBITRATION 

trary,"  to  authorize  such  rejDort  to  be  given  out  for 
publication.  No  arbitrator  could  be  paid  for  more 
than  fifteen  days'  service  under  the  act.  They  re- 
ceived ten  dollars  a  day  for  each  day  of  actual  service. 

The  legislature  of  1899  repealed  the  act  of  1897 
altogether  and  passed  a  new  act  containing  all  the 
provisions  of  the  act  of  1897,  except  that  the  clause 
requiring  that  fifty  men  be  affected  as  a  condition 
precedent  to  mediation  was  stricken  out.  The  mem- 
bers of  the  commission  were  given  an  annual  salary 
under  the  new  act  instead  of  a  per  diem  of  ten 
dollars. 

In  191 1,  the  general  assembly  created  the  bureau 
of  inspection.  Section  three  of  that  act  attempted 
to  confer  the  powers  held  by  the  old  labor  commis- 
sion on  the  deputy  inspector  of  buildings,  factories 
and  workshops,  and  the  deputy  inspector  of  mines 
and  mining.  The  status  of  the  act  was  considered 
too  indefinite  to  permit  the  arbitration  of  the  Indi- 
anapolis street  railway  strike  in  191 3  by  the  two 
deputy  inspectors  and  the  circuit  judge  of  Marion 
County  and  this  controversy  was  settled  after  per- 
sonal intervention  by  the  governor  and  formal  hear- 
ings before  the  public  service  commission  of  Indiana. 

A  Georgia  act,  passed  in  191 1,  can  hardly  be  con- 
sidered within  the  scope  of  legislation  for  industrial 


INITIAL    EXPERIMENTS    AT    HOME      205 

arbitration.  The  act  merely  gives  the  commissioner 
of  labor  power  to  inquire  into  the  causes  of  strikes 
and  "whenever  practicable  offer  his  good  offices  to 
the  contending  parties  with  a  view  of  bringing  about 
friendly  and  satisfactory  adjustments  thereof." 

Before  1900,  the  American  Federation  of  Eabor 
had  taken  a  more  or  less  active  stand  in  political 
matters  having  to  do  with  the  welfare  of  its  mem- 
bership. It  had,  however,  before  that  time  success- 
fully resisted  the  efforts  of  certain  members  to  com- 
mit it  to  the  cause  of  any  particular  party. 

The  seamen's  rights  bill,  approved  December  31, 
1898,  abolished  in  certain  ports  "imprisonment  for 
desertion  from  the  vessels,"  and  guaranteed  to  a 
seaman  "a  right  to  quit  work  at  any  time  and  for 
any  reason  sufficient  to  himself,  in  any  port  of  the 
United  States."  This  bill  was  indorsed  by  Pres- 
ident Gompers  and  the  legislative  committee  of  the 
American  Federation  of  Labor.^ 

The  policy  of  the  American  Federation  of  Labor 
with  regard  to  compulsory  arbitration  was  formu- 
lated by  a  special  committee,  of  which  Edgar  A. 
Perkins,  of  Indiana,^  was  chairman,  at  the  Louis- 


°  Report  of  President  Gompers,  1901,  p.  13  of  the  proceed- 
ings. 
*  Formerly  president  Indiana  State  Federation  of  Labor. 


2o6         INDUSTRIAL    ARBITRATION 

ville  convention  in   1900.     That  policy  prevails  to- 
day. 

The  New  Zealand  law,  the  Indiana  labor  com- 
mission act  of  1898,  the  Illinois  state  arbitration 
law  and  the  Erdman  act  were  severely  criticized  in 
the  report.^**  "The  kernel  of  this  species  of  legis- 
lation," it  said,  "is  a  desire  to  prevent  strikes  by 
punishing  the  striker."  Industrial  courts  of  France 
were  put  in  the  same  class  as  the  compulsory  arbi- 
tration boards  of  New  Zealand.^^  A  bill  introduced 
in  the  German  Reichstag  about  this  time  was  said 
to  have  "the  same  underlying  motive."^"  A  law 
adopted  by  the  Hungarian  Diet,  providing  "that 
agricultural  workers  must  make  agreements  for  spe- 
cific terms  of  service"  and  that  "any  violation  of  the 
agreement  shall  subject  the  offending  party  to  Im- 
prisonment,"^^ was  denounced  as  one  designed  "to 
prevent  strikes  by  punishing  the  striker."  The 
Swedish  law  "extending  the  master  and  servant 
laws  of  Sweden  to  the  Industrial  workers  of  that 
country"  was  "fiercely  combated  by  the  lovers  of 
liberty,"  said  the  report/*  Objections  were  made  to 
the  Illinois  law  and  the  Indiana  law  then  In  force, 


'Proceedings  of  the  A.  F.  L.  Conventioti,  1900,  p.  143. 
'  Ibid. 
'  Ibid. 
'  Ibid. 
'  Ibid. 


INITIAL    EXPERIMENTS    AT    HOME       207 

because  they  permitted  the  judge  for  the  violation 
of  an  award,  to  punish  the  offender  for  contempt  of 
court.  "The  thought  underlying  these  laws,"  said 
the  report,  "is  that  the  individual  may  alienate  his 
right  to  liberty,  and  it  is,  therefore,  destructive  of 
the  fundamental  principle  of  the  Republic  of  the 
United  States."^^  Trade  unionists  point  to  the  Eng- 
lish "statute  of  laborers"  as  the  forerunner  of  com- 
pulsory arbitration,  and  this  statute  was  pronounced, 
by  the  special  committee  of  the  American  Federation 
of  Labor,  "every  bit  as  fair  as  the  New  Zealand,  In- 
diana or  Illinois  laws." 

Taking  up  the  constitutional  prohibition  of  invol- 
untary servitude,  the  committee  was  not  disposed  to 
consider  this  prohibition  applicable  to  the  "involun- 
tary servitude,"  resultant  from  the  "so-called  volun- 
tary arbitration  laws,"  in  view  of  the  decision  of  the 
United  States  Supreme  Court  in  Robertson  et  al.  vs. 
Harry  Baldwin,  decided  January  25,  1897,  and 
from  which  Justice  Harlan  dissented.  The  holding 
of  the  court  was  quoted  thus: 

"An  individual  may,  for  a  valuable  consideration, 
contract  for  the  surrender  of  his  personal  liberty 
for  a  definite  time  and  for  a  recognized  purpose,  and 
subordinate  his  going  and  coming  to  the  will  of  an- 
other, during  the  continuancy  of  the  contract;  not 

» Ibid. 


2o8         INDUSTRIAL    ARBITRATION 

that  all  such  contracts  would  be  lawful,  but  that  a 
servitude  which  was  knowingly  and  willingly  en- 
teied  into  could  not  be  termed  involuntary. 

"Commissions,  with  power  to  examine  and  re- 
port," the  statement  concludes,  "would  seem  to  be 
more  in  line  with  what  is  actually  desired,  but  we 
would  call  attention  to  the  fact  that  even  these  have 
in  them  a  feature  dangerous  to  liberty,  because  from 
them  may  come — and  sometimes  do  come — reports 
which  have  a  tendency  to  warp  public  opinion  and 
prepare  it  for  measures  which  without  such  prepara- 
tion the  public  would  unhesitatingly  reject. 

".  .  .  we  are  utterly  opposed  to  any  law  en- 
acted by  the  state  which  will  in  any  way^*'  by  consent 
or  otherwise,  deprive  the  worker  of  his  right  to  quit 
work  at  any  time  and  for  any  reason  sufficient  to 
himself." 

Max  S.  Hayes,  the  well-known  Socialist  repre- 
senting the  Cleveland  Central  Labor  Union,  was  sec- 
retary of  this  committee. 

The  Industrial  Workers  of  the  World  are  opposed 
to  arbitration  In  every  form.  The  preamble  of  their 
declaration  of  principles  recites  that  "the  working 
class  and  the  employing  class  have  nothing  in  com- 
mon" and  their  platform  demands  the  "abolition  of 
the  wage  system." 

The  Socialist  party  Is  regarded  as  unfavorable  to 
arbitration  of  any  kind,  since  It  interferes  with  the 
sympathetic  strike.     It  was  the  Socialist  Influence  In 


'Proceedings  of  the  A.  F.  L.  Convention,  1900,  pp.  145-146. 


INITIAL    EXPERIMENTS    AT    HOME       2og 

the  Western  Federation  of  Miners  which  forbade 
that  organization  to  agree  with  their  employers  upon 
anything  more  than  a  wage  scale. 

Employers'  organizations,  as  a  rule,  are  not  kindly 
disposed  to  arbitration,  and  certainly  not  favorable 
to  compulsory  arbitration.  Generally,  their  conten- 
tion is  that  they  have  a  right  to  employ  whom  they 
will,  when  they  will,  under  whatever  conditions  they 
desire,  and  pay  what  the  supply  and  demand  of  la- 
bor compels  them  to  pay. 

In  its  declaration  of  labor  principles,  however,  the 
National  Association  of  Manufacturers  asserts  that 
it  is  "not  opposed  to  organizations  of  labor  as  such," 
and  that  "no  person  should  be  refused  employment 
or  in  any  way  discriminated  against  on  account  of 
membership  or  non-membership  in  any  labor  organi- 
zation, and  there  should  be  no  discrimination  against 
or  interference  with  any  employee  who  is  not  a  mem- 
ber of  a  labor  organization  by  the  members  of  such 
organizations. 

"With  due  regard  to  contractors,"  the  declaration 
asserts,  "it  is  the  right  of  the  employee  to  leave  his 
employment  when  he  sees  fit,  and  it  is  the  right  of 
the  employer  to  discharge  any  employee  when  he 
sees  fit. 

"The  National  Association  of  Manufacturers  dis- 
approves absolutely  of  strikes  and  lockouts,  and  fa- 


2IO         INDUSTRIAL    ARBITRATION 

vors  an  equitable  adjustment  of  all  differences  be- 
tween employers  and  employees  by  any  amicable 
method  that  will  preserve  the  rights  of  both  parties. 
"Employees  have  the  right  to  contract  for  their 
services  in  a  collective  capacity,  but  any  contract  that 
contains  a  stipulation  that  employment  should  be  de- 
nied to  men  not  parties  to  the  contract  is  an  invasion 
of  the  constitutional  rights  of  the  American  working 
man,  is  against  the  public  policy,  and  is  in  violation 
of  the  conspiracy  laws.  This  Association  declares 
its  unalterable  antagonism  to  the  closed  shop,  and  in- 
sists that  the  doors  of  no  industry  be  closed  against 
American  workmen  because  of  their  membership  or 
non-membership  in  any  labor  organization," 

The  National  Civic  Federation,  an  organization 
which  was  formed  as  the  result  of  several  confer- 
ences on  arbitration  and  conciliation  under  the  aus- 
pices of  the  Chicago  Civic  Federation,  has  promoted 
by  various  means,  the  movement  for  industrial  peace. 
This  organization  has  an  executive  committee  of  fif- 
teen members  each  from  Labor,  Capital  and  the  gen- 
eral public.  It  has  a  department  of  conciliation  and 
arbitration  and  a  membership  extending  to  every  in- 
dustrial center,  composed  of  representatives  of  the 
capitalists,  wage  earners  and  general  public  in  equal 
numbers. 

"The  National  Civic  Federation  aims  to  bring  Into 
cooperation  the  sane  and  patriotic  leaders  of  the 
forces  of  employers  and  employed  and  of  the  inter- 


INITIAL    EXPERIMENTS    AT    HOME      211 

ested  but  too  often  forgotten  and  forgetting  third 
party,  the  general  public ;  its  purpose  is  constructive, 
not  destructive.  It  would  develop,  through  agencies 
here  described,  the  best  elements  in  the  organizations 
of  capital  and  labor,  and  it  would  keep  awake  a 
wholesome  public  concern  in  the  profit  of  one,  the 
welfare  of  the  other  and  the  prosperity  of  all, 
through  the  advent  of  an  intelligent  understanding 
of  economic  laws.  It  would  show  that  organized  la- 
bor can  not  be  destroyed  without  the  debasement  of 
the  masses.  It  would  show  that  organized  labor 
can  be  led  to  correct  its  errors.  It  would  show  that 
capital  can  be  taught  the  practicability  of  securing 
industrial  peace  in  accordance  with  business  meth- 
ods. It  would  show  that  the  twin  foes  of  industrial 
peace  are  the  anti-union  employers  and  the  Social- 
ists, and  that  the  former  are  unconsciously  promot- 
ing that  class  hatred  which  the  latter  boldly  advo- 
cate. It  would  present  a  hopeful  picture  of  future 
harmony  between  capital  and  labor,  based  upon  the 
establishment  of  their  rightful  relations,  instead  of 
the  pessimistic  prophecy  of  the  degradation  of  labor 
because  of  its  exceptional  and  inexcusable  errors  or 
crimes,  or  of  a  social  revolution  provoked  by  capital 
when  organized  for  oppression. "^^ 

In  1903,  because  some  members  of  the  National 
Association  of  Manufacturers  were  unwilling  to  al- 
low the  major  portion  of  its  attention  to  be  devoted 
to  fighting  organized  labor,  the  Citizens'  Industrial 
Association  was  organized.^^    This  is  a  national  or- 


"  Bliss,  The  Encyclopedia  of  Social  Reform,  p.  807. 
"  Carlton,  The  History  and  Problems  of  Organised  Labor, 
p.  89. 


212         INDUSTRIAL   ARBITRATION 

ganization,  made  up  of  district  and  local  associa- 
tions. There  are  about  five  hundred  of  the  latter 
in  most  of  the  states  and  territories.  A  few  years 
ago,  the  British  Citizens'  Industrial  Association, 
modeled  after  the  American  institution,  was  or- 
ganized. 

The  Citizens'  Industrial  Association  of  the  United 
States  is  bitterly  hostile  to  organized  labor,  although 
the  contention  Is  sometimes  made  that  it  is  not. 
James  A.  Emery,  one  of  the  moving  spirits  in  the 
National  Association  of  Manufacturers,  is  a  leader 
in  the  Citizens'  Industrial  Association.  The  late 
James  W.  Van  Cleave  was  also  prominent  in  both. 
They  have  been  numbered  among  the  best  known 
foes  of  organized  labor  in  this  country.  The  late  C. 
W.  Post  also  was  a  moving  spirit  in  the  Citizens'  In- 
dustrial Association.  A  monthly  magazine.  The 
Square  Deal,  publishes  this  platform  of  principles : 

"No  closed  shop;  no  restriction  as  to  the  use  of 
tools,  machinery,  or  material,  except  such  as  are  un- 
safe; no  limitation  of  output;  no  restriction  as  to  the 
number  of  apprentices  and  helpers,  when  of  proper 
age;  no  boycott;  no  sympathetic  strike;  no  sacrifice 
of  independent  workmen  to  the  labor  union ;  no  com- 
pulsory use  of  union  label." 

Although  this  organization  does  not  set  forth  Its 


INITIAL    EXPERIMENTS    AT    HOME       213 

attitude  regarding  conciliation  and  arbitration,  it 
can  hardly  be  expected  to  be  favorable  to  any  in- 
dustrial scheme  which  involves  collective  bargain- 
ing. It  stands  for  an  industrial  autocracy  and  there- 
fore savors  of  medievalism.  While  it  recognizes  the 
right  of  Capital  to  organize,  with  the  greatest  non- 
chalance it  denies  the  same  right  to  Labor. 

The  platform  declarations  of  political  parties  on 
industrial  arbitration  have  not  been  more  explicit 
than  platform  declarations  usually  are.  The  Social- 
ist party  is  opposed  to  compulsory  arbitration,  in 
fact  arbitration  of  almost  any  kind,  if  not  by  offi- 
cial declarations  against  it,  then  assuredly  by  its 
constructive  program  of  industrialism  as  opposed  to 
capitalism.  The  Prohibition  party,  as  far  back  as 
1888,  declared  that  "arbitration  is  the  Christian, 
wise  and  economic  method  of  settling  national  dif- 
ferences and  the  same  method  should  by  judicious 
legislation,  be  applied  to  the  settlement  of  disputes 
between  large  bodies  of  employers  and  their  em- 
ployees."^" 

This  is  typical  of  later  planks  on  the  subject.  No 
party  has  outlined  any  particular  form  of  arbitra- 
tion. No  party  has  said  much  about  what  kind  of 
arbitration  it  favored,  at  least  in  national  platforms. 

"  Pro.  Nat.  Plat.,  1888. 


214        INDUSTRIAL   ARBITRATION 

Both  the  Republican  and  Democratic  parties,  in  their 
platform  of  1896,  declared  in  favor  of  arbitration  to 
adjust  the  differences  between  employer  and  em- 
ployee engaged  in  interstate  commerce.  The 
Democratic  party  had  a  plank  in  1 900  favoring 
"arbitration  as  a  means  of  settling  disputes  between 
corporations  and  their  employees"  and  the  Republi- 
can party  in  19 12  favored  the  "speedy  enactment  of 
laws  to  provide  that  seamen  shall  not  be  compelled  to 
endure  involuntary  servitude."  In  1908  and  in 
1 9 10,  the  Indiana  Democratic  state  platform  con- 
tained declarations  favoring  compulsory  arbitration. 


CHAPTER  IX 

LEGISLATION  IN  UNITED  STATES 

IN  ALL  of  the  seventeen  states  having  permanent 
state  boards  of  conciliation  and  arbitration,  ex- 
cept Louisiana  and  Oklahoma,  there  are  three  mem- 
bers. Louisiana  has  five  members  and  Oklahoma 
six.  New  York's  board  is  made  up  from  officials  of 
the  department  of  labor.  Generally,  board  mem- 
bers are  appointed  by  the  governor,  though  in  Okla- 
homa three  members  are  recommended  by  the  state 
commission  of  labor,  and  in  most  states  at  least  one 
member  must  be  a  representative  employer  and  one 
member  a  representative  employee.  Illinois  also  re- 
quires one  member  to  be  taken  from  each  of  the  two 
leading  political  parties. 

The  third  member  of  a  permanent  state  board  of 
arbitration,  generally  speaking,  is  required  to  be  a 
disinterested  citizen.  Minnesota,  Missouri,  Califor- 
nia and  Utah  require  that  the  third  member  shall  be 
neither  an  employer  nor  an  employee.  In  some 
states  the  member  representing  the  employees  must 
be  recommended  by  a  labor  organization. 

215 


2i6         INDUSTRIAL    ARBITRATION 

Members  hold  their  office  for  four  years  in  one 
state,  three  years  in  seven  states,  two  years  in  six 
states,  one  year  in  one  state  and  indefinitely  in  two 
states,  Louisiana  and  New  York.  Salaries  vary  from 
three  dollars  a  day  in  Montana  to  eight  dollars  a  day 
in  New  Hampshire  and  one  thousand  five  hundred 
dollars  and  two  thousand  five  hundred  dollars  a  year 
in  Illinois  and  Massachusetts,  respectively. 

Of  the  nine  states  having  state  boards  of  arbitra- 
tion but  providing  also  for  local  and  voluntary 
boards,  California  has  made  it  possible  when  the 
parties  to  any  controversy  or  difference  do  not  de- 
sire to  submit  their  difference  to  a  state  board  "they 
may  by  agreement  each  choose  one  person,  and  the 
two  shall  choose  a  third,  who  shall  be  chairman  and 
umpire,  and  the  three  shall  constitute  a  board  of  ar- 
bitration and  conciliation  for  the  special  controversy 
submitted  to  It  and  for  that  purpose  shall  have  the 
same  powers  as  the  state  board."  They  may  be 
sworn  and  shall  adopt  such  rules  of  procedure  as 
they  may  see  fit.  Local  boards  are  constituted  In 
Maine  the  same  as  In  California.  They  are  paid  by 
the  state. 

Massachusetts  makes  the  effect  of  the  decision  of 
the  local  board  dependent  upon  the  terms  fixed  in 
the  submission.     The  arbitrators  receive  three  dol- 


LEGISLATION    IN    UNITED    STATES      217 

lars  a  day  from  the  treasury  of  the  city  or  town 
where  the  controversy  arose.  A  copy  of  their  find- 
ings is  filed  with  the  state  board.  Otherwise,  a  local 
board  is  constituted,  as  in  California  and  Maine. 

The  Alabama  act  is  practically  the  same  as  those 
of  California,  Maine  and  Massachusetts.  Local 
boards  are  constituted  "by  agreement  of  the  par- 
ties" in  Minnesota.  They  have  all  the  powers  of  the 
state  board.  Montana  makes  it  possible  for  local 
boards  either  to  be  "mutually  agreed  upon"  or  to 
be  selected  one  by  each  party  and  the  third  by  the 
first  two.  The  jurisdiction  of  the  board  is  exclusive 
but  it  may  ask  and  receive  the  assistance  of  the  state 
board.  Arbitrators  are  paid  by  the  county.  The 
time  allowed  for  hearings  must  not  exceed  ten  days. 

In  Nebraska,  the  deputy  commissioner  of  labor  is 
ex-officio  secretary  of  local  boards.  They  have  the 
same  powers  in  particular  controversies  as  the  state 
boards.  The  New  York  law  is  very  much  the  same 
as  the  Nebraska  act  as  to  local  boards,  except  that 
one  of  the  members  acts  as  secretary  and  the  law 
makes  no  provision  for  their  compensation.  Ohio's 
provision  for  local  boards  Is  identical  with  that  of 
Minnesota. 

Of  the  nine  states  where  temporary  arbitration 
boards  are  provided  by  state  law,  the  labor  commis- 


2i8         INDUSTRIAL    ARBITRATION 

sioners  are  mediators  in  Idaho  and  the  labor  com- 
missioner is  mediator  in  Colorado  and  Washington. 
The  chief  of  the  bureau  of  industrial  statistics  is 
mediator  in  Maryland,  the  commissioner  of  the  bu- 
reau of  labor  in  Iowa  and  the  governor  in  Nevada. 
Pennsylvania  has  a  chief  of  the  bureau  of  mediation, 
an  official  of  the  department  of  labor,  under  an  act 
of  191 3.  Texas  and  Kansas  do  not  provide  for 
mediation  by  state  agency. 

Failing  in  conciliation,  the  governor  of  Nevada 
is  empowered  to  appoint  temporary  arbitration 
boards.  The  two  labor  commissioners  and  the  judge 
of  the  district  court  where  the  dispute  arises  consti- 
tute the  board  of  arbitration  in  Idaho.  They  are  re- 
quired to  obtain  consent  to  arbitration  in  writing. 
Local  boards  are  chosen,  one  member  by  each  party, 
and  the  third  by  the  two  members  already  chosen,  in 
Colorado,  Washington  and  Maryland.  Upon  the 
failure  of  the  two  to  agree,  a  third  member  is  ap- 
pointed by  the  deputy  state  labor  commissioner  in 
Colorado.  If  mediation  or  an  effort  to  obtain  arbi- 
tration fails  In  Washington,  the  state  labor  commis- 
sioner must  request  reasons  for  refusal.  These  rea- 
sons must  be  made  public.  The  chief  of  the  bureau 
of  industrial  statistics  in  Maryland,  failing  to  con- 
ciliate the  parties  or  to  obtain  arbitration,  must  make 


LEGISLATION    IN    UNITED    STATES      219 

a  complete  investigation,  ascertain  which  party  is 
mainly  responsible  or  blameworthy,  and  publish  a 
report  In  some  daily  newspaper  over  his  signature. 

Aside  from  the  Maryland  law  of  1878  and  the 
provisions  for  local  boards  appointed  at  the  sugges- 
tion of  the  chief  of  the  bureau  of  Industrial  statistics, 
industrial  disputes  may  be  settled  in  Maryland  by 
the  voluntary  agreement  of  both  parties  to  abide  the 
determination  of  a  judge  or  justice  of  the  peace,  or 
the  determination  of  two  arbitrators  satisfactory  to 
the  employers,  two  satisfactory  to  the  employees, 
appointed  by  the  judge,  and  the  judge.  Such  deter- 
minations are  given  as  a  judgment  of  the  court. 

Five  persons  employed  as  workmen  or  two  or 
more  separate  firms,  corporations  or  individuals  em- 
ploying labor  within  the  county  may  petition  the 
district  court  of  each  county  in  Kansas  to  issue  a  li- 
cense for  the  establishment  of  a  tribunal  for  volun- 
tary arbitration.  It  Is  the  duty  of  the  court  to  grant 
the  license  and  name  four  persons  to  compose  the 
tribunal,  two  workmen  and  two  employers,  also  fix 
a  time  and  place  for  their  first  meeting.  Such  tri- 
bunal shall  continue  for  one  year  and  "may  take  jur- 
isdiction of  any  dispute"  submitted  to  it  for  decision. 
Disputes  occurring  In  one  county  may  be  referred 
to  a  tribunal  already  created  in  an  adjoining  county. 


220        INDUSTRIAL   ARBITRATION 

An  umpire  shall  be  appointed  "to  act  after  disagree- 
ment is  manifested  in  the  tribunal  by  failure  to 
agree  during  three  meetings  held  and  full  discus- 
sion had."  His  award  is  final.  A  majority  of  the 
tribunal  may  provdde  for  the  examination  and  in- 
vestigation of  books.  The  proper  court  upon  mo- 
tion of  any  one  interested  may  enter  judgment  on 
the  award. 

The  trade  union  of  which  the  employees  are  mem- 
bers or  a  majority  of  the  employees  and  the  em- 
ployer, each  names  two  arbitrators  and  the  fifth  is 
chosen  by  the  other  four  or  the  district  judge  in 
Texas.  Upon  petition  from  a  legally  constituted 
board,  the  judge  must  issue  an  order  approving  the 
board.  During  arbitration  the  status  existing  prior 
to  the  disagreement  must  be  maintained.  The  award 
of  a  court  of  arbitration  may  be  enforced  in  equity. 
Judgment  is  entered  on  the  award  within  ten  days 
after  being  filed  in  the  district  clerk's  office,  unless 
exceptions  are  made.  Appeal  is  allowed  to  the  court 
of  civil  appeals  having  jurisdiction  thereof.  The 
decision  of  this  court  is  final. 

Either  or  both  parties  to  a  dispute,  the  mayor  of 
the  city,  the  chairman  of  the  board  of  supervisors  of 
the  county,  twenty-five  citizens  joined  in  a  petition 


LEGISLATION    IN    UNITED    STATES      221 

or  a  commissioner  of  the  bureau  of  labor,  after  in- 
vestigation, may  make  written  application  to  the 
governor  for  the  appointment  of  a  board  of  arbitra- 
tion and  conciliation  in  Iowa,  when  at  least  ten  per- 
sons are  affected. 

Upon  notice,  It  is  the  duty  of  the  governor  of  Iowa 
to  notify  the  parties  of  the  application  and  make  re- 
quest that  each  within  three  days  recommend  five 
persons  "who  have  no  direct  interest  in  such  dispute 
and  are  willing  and  ready  to  act  as  members  of  the 
board,  and  the  governor  shall  appoint  from  each 
list  submitted  one  of  such  persons  recommended."  If 
either  party  fails  or  neglects  to  make  a  recommenda- 
tion within  the  legal  period,  the  governor  "shall  ap- 
point a  fit  person  who  shall  be  deemed  to  be  ap- 
pointed on  the  recommendation  of  either  of  said 
parties."  The  members  so  appointed  are  required, 
within  five  days  of  their  appointment,  to  name  one 
person  who  is  willing  and  ready  to  act  as  a  third 
member  of  their  board.  Upon  their  failure  or  neg- 
lect to  do  so,  the  governor  shall  appoint  a  third  mem- 
ber. If  both  parties  join  in  an  application  and  agree 
to  be  bound  by  the  decision,  it  shall  be  binding  for 
one  year.  The  board  elects  one  member  chairman 
and  one  secretary.    It  may  employ  clerks  and  stenog- 


222         INDUSTRIAL   ARBITRATION 

raphers.  The  members  receive  five  dollars  a  day. 
Expenses  of  arbitration  under  the  act  are  payable 
out  of  the  state  treasury. 

Iowa  boards  of  arbitration  and  conciliation  have 
full  power  to  subpoena  witnesses  and  examine  them 
under  oath.  They  are  required  to  visit  the  scene 
of  the  controversy  and  make  a  personal  investiga- 
tion. Within  five  days  after  the  completion  of  the 
investigation,  unless  the  time  is  extended  for  good 
cause  by  the  governor,  boards  are  required  to  make 
a  written  decision.  Provision  is  made  by  the  act  for 
printing  the  decision  in  two  newspapers  of  general 
circulation  in  the  county  where  the  controversy  ex- 
isted. 

State  boards  of  arbitration  all  have  practically 
the  same  provisions  governing  the  process  of  inter- 
vention and  proceedings  subsequent  to  intervention. 

The  Massachusetts  act  may  be  taken  as  typical  of 
a  group.  This  state  makes  it  the  duty  of  the  mayor 
of  a  city,  the  selectman  of  a  town,  the  employer  or 
employees  actually  concerned  in  a  threatened  strike 
or  lockout  to  notify  the  state  board.  Maine,  Ohio, 
Oklahoma,  Louisiana  and  Utah  have  essentially  the 
same  requirement  except  that  notice  must  proceed 
from  different  local  officials.  The  chief  executive 
officer  of  every  labor  organization   affected  by  a 


LEGISLATION    IN    UNITED    STATES      223 

strike  or  lockout  in  Oklahoma  is  required  to  inform 
the  board  of  "such  information  as  he  may  possess 
touching  the  differences  or  controversy  and  the  num- 
ber of  employees  involved."  Experience  supports 
this  provision  inasmuch  as  state  boards  may  accom- 
plish more  toward  conciliation  if  conditions  are  not 
permitted  to  become  acute,  as  they  often  do  from 
delay.  Unless  such  notice  is  required,  it  frequently 
happens  that  the  board  hears  nothing  of  a  strike  or 
lockout  until  some  overt  act  of  violence  gets  into  the 
newspapers.  Then  it  may  be  too  late  to  bring  the 
hostile  parties  together. 

Says  President  Hadley  of  Yale  University:^ 

"The  history  of  boards  of  arbitration  shows  how 
little  can  be  accomplished  by  the  exercise  of  political 
authority  after  the  fight  has  once  begun." 

In  its  annual  report  for  1904,  the  New  Jersey 
state  board  of  arbitration  urged  that  the  state  law  be 
amended  to  require  the  chief  executive  of  the  local 
government  to  furnish  the  board  with  Information 
of  strikes  and  lockouts.  This  Is  typical  of  the  ex- 
perience of  all  state  boards  where  no  one  was 
charged  with  the  duty  of  giving  Information 
promptly.     The  Indiana  Labor  Commission  in  its 


^  Report  of  Industrial  Commission,  Vol.  17,  p.  692. 

I 


224         INDUSTRIAL    ARBITRATION 

report  for  1907-08  and  the  Ohio  board  in  its  report 
for  1906  asked  to  have  local  authorities  made  re- 
sponsible for  giving  notice  of  strikes  and  lockouts. 

It  is  the  board's  duty  in  Massachusetts  to  obtain 
an  amicable  settlement,  if  possible,  or  endeavor  to 
persuade  the  employer  and  employees  to  submit  their 
controversy  either  to  a  local  board  of  arbitration  or 
to  the  state  board. 

If  the  employer  or  a  majority  of  the  employees  or 
both  parties  in  any  controversy  involving  not  less 
than  ten  employees  apply  formally  for  arbitration, 
agreeing  to  continue  at  work  or  in  business  without 
any  strike  or  lockout  until  the  decision  of  the  board 
is  made,  if  made  within  three  weeks  from  the  date 
of  the  application,  it  is  the  duty  of  the  board  to  pro- 
ceed at  once  to  a  hearing. 

The  Alabama  act  is  similar  to  that  of  Massachu- 
setts regarding  the  process  preliminaiy  to  arbitra- 
tion. Application  for  conciliation  and  arbitration 
may  be  signed  by  either  or  both  parties,  if  twenty 
men  are  Involved,  in  Louisiana.  The  application  not 
only  must  contain  a  concise  statement  of  grievances 
but  an  agreement  to  continue  at  work  or  in  business 
until  the  decision  of  the  board  is  published,  if  made 
within  ten  days  from  the  date  of  application. 

Twenty-five  men  must  be  involved  in  Illinois  to 


LEGISLATION    IN    UNITED    STATES      225 

warrant  Intervention  by  the  state  board  which  is 
by  application  of  either  or  both  parties.  It  is  the 
board's  duty  when  a  strike  or  lockout  is  threatened 
to  "put  itself  in  communication  as  soon  as  may  be 
with  such  employer  or  employees,  and  endeavor  by 
mediation  to  effect  an  amicable  settlement  between 
them,  or  to  endeavor  to  persuade  them  to  submit  the 
matters  in  dispute  to  the  state  board." 

The  Connecticut  act  provides  for  mediation  by  the 
board  on  its  own  motion.  Employers  and  employees 
may  jointly  submit  their  differences  to  the  state 
board  whereupon  an  investigation  is  made  and  a  de- 
cision rendered. 

California's  provisions  for  arbitration  by  the  state 
board  are  identical  with  those  of  Massachusetts.  If 
the  petitioners  fail  to  keep  the  promise  made  to 
continue  at  work  or  in  business,  the  board  shall  pro- 
ceed no  further  in  the  investigation  without  the  writ- 
ten consent  of  the  adverse  i:»arty,  and  the  party  vio- 
lating the  contract  must  pay  the  extra  cost. 

Application  for  arbitration  to  the  state  board  may 
be  made  by  either  party  in  Minnesota.  Notice  to 
the  adverse  party  is  necessary  unless  notice  Is 
waived. 

Missouri  makes  it  the  duty  of  the  employer  and 
the  employee  to  submit  for  Investigation  grievances 


226         INDUSTRIAL    ARBITRATION 

or  disputes  to  the  state  board.     This  duty  is  defined 
in  the  following  clause: 

"In  all  cases  when  any  grievances  or  dispute  shall 
arise  between  any  employer  and  his  employees,  said 
dispute  involving  ten  or  more  employees,  it  shall  be 
the  duty  of  the  parties  to  said  controversy  to  submit 
the  same  to  said  board  for  investigation." 

Parties  are  bound  to  continue  at  work  or  in  busi- 
ness in  Montana,  if  the  decision  of  the  board  is  made 
within  four  weeks  after  the  date  of  application.  Mon- 
tana has  a  provision  similar  to  that  of  California 
governing  violations  of  the  contract  contained  in  the 
application  for  arbitration. 

Only  by  mutual  agreement  may  a  grievance  or 
dispute  between  an  employer  and  employee  be  sub- 
mitted to  the  state  board  in  Nebraska. 

The  commissioner  of  labor  is  mediator  In  New 
Hampshire.  If  he  fails  to  obtain  an  adjustment  of 
differences,  it  is  his  duty  to  endeavor  to  have  the 
contending  parties  submit  their  differences  to  the 
state  board  of  arbitration.  As  a  part  of  his  prelim- 
inary investigation,  he  is  required  to  make  a  deci- 
sion as  to  what  ought  to  be  conceded  by  either  or 
both  parties. 

The  New  York  board  is  authorized  to  make  find- 
ings after  application  has  been  made    to    it,    pre- 


LEGISLATION    IN    UNITED    STATES      227 

sumably  from  the  act,  by  both  parties.  The  second 
deputy  commissioner  of  labor  is  chief  mediator. 
Grievances  or  disputes  may  be  submitted  to  the  board 
on  agreement  in  writing  to  abide  by  its  determina- 
tion. Voluntary  boards  may  be  created  for  indi- 
vidual cases  when  each  side  selects  one  arbitrator 
and  the  two  select  a  third. 

Twenty-five  employees  must  be  affected  as  a  con- 
dition precedent  to  mediation  in  Ohio. 

Each  party  may  submit  a  separate  list  of  griev- 
ances or  they  may  join  in  a  statement  of  facts,  un- 
der the  Utah  act.  Application  for  arbitration  must 
precede  a  strike  or  lockout,  or  an  agreement  to  re- 
sume work  or  business  must  be  signed  if  a  strike  or 
lockout  is  under  way. 

The  phraseology  of  the  Vermont  statute  is  almost 
identical  with  that  of  the  Massachusetts  act,  but  Ver- 
mont has  no  provision  for  local  boards. 

Seven  states — Iowa,  Idaho,  Colorado,  Massachu- 
setts, Missouri,  Ohio  and  Vermont — require  an  in- 
vestigation by  state  authority  of  conditions  surround- 
ing actual  or  threatened  strikes  and  lockouts,  even 
though  neither  party  asks  for  it.  This  process  is 
known  as  compulsory  investigation  and  has  many 
features  to  commend  it  to  the  approval  of  the  prac- 
tical man  seeking  a  practical  remedy.    This  process 


228         INDUSTRIAL    ARBITRATION 

is  founded  on  the  idea  that  public  opinion,  when  ap- 
prised of  the  true  state  of  affairs  in  a  troubled  dis- 
trict, will  operate  for  a  speedy  adjudication  by  the 
party  most  blameworthy.  This  is  the  merit  of  con- 
gressional investigations  in  strikes  of  national  im- 
portance and  the  merit  of  all  investigations,  official 
or  unofficial.  Investigations  are  likely  to  fail  when 
the  public  has  little  confidence  in  the  fairness  of  offi- 
cials charged  with  the  duty  of  sifting  out  the  facts. 
In  191 2  the  Massachusetts  state  board  of  concilia- 
tion and  arbitration  was  called  upon  to  investigate 
and  report  conditions  after  the  company  had  refused 
to  arbitrate  the  Boston  Elevated  strike.  Evidence 
brought  out  by  the  board  showed  that  the  public 
had  been  deceived  by  the  company,  which  first  had 
claimed  that  there  were  less  than  one  thousand  men 
on  the  strike.  The  company  later  conceded 
there  were  one  thousand  six  hundred  and  finally  ad- 
mitted that  there  were  two  thousand  five  hundred. 
The  books  of  the  secretary  of  the  street  railway  men's 
union  showed  that  three  thousand  three  hundred 
seventy-two  members  had  received  strike  benefits. 
The  books  also  showed  that  the  company  was  im- 
porting strikebreakers  contrary  to  its  claim  and  the 
findings  of  the  state  board  showed  that  officials  of 
the  company  had  induced  vicious  characters  to  come 


LEGISLATION    IN    UNITED    STATES      229 

to  the  city.  The  demand  of  the  mayor  and  the  gov- 
ernor that  the  strike  be  settled  forced  the  company 
to  consent  to  arbitration  and  all  demands  of  the 
union  were  conceded  by  the  board. 

In  Iowa,  the  decision  following  investigation  must 
be  published.  Idaho  requires  an  official  investiga- 
tion if,  after  five  days,  mediation  has  failed.  The 
deputy  labor  commissioner  of  Colorado  must  make 
an  Investigation  of  facts  If  mediation  fails  and  it  Is 
a  misdemeanor  not  to  furnish  sworn  statements  as 
to  why  arbitration  Is  refused.  Massachusetts  re- 
quires the  board  to  ascertain  which  party  is  mainly 
responsible  and  publish  a  report  of  its  findings.  In 
formal  hearings  under  the  Massachusetts  act,  all 
persons  interested  must  be  heard  or  examined  by 
the  board  and  it  is  its  duty  to  advise  the  respective 
parties  what  ought  to  be  done  or  submitted  to  by 
either  or  both  parties  to  adjust  the  controversy.  Mis- 
souri makes  investigation  compulsory,  if  conciliation 
fails,  and  also  fixes  the  duty  of  the  parties  to  submit 
a  controversy  to  arbitration.  Ohio  requires  an  In- 
vestigation if  conciliation  fails,  advice  from  the 
board  as  to  what  both  parties  should  do,  and  pub- 
lication of  findings. 

"When  a  controversy  or  difference,  not  Involving 
a  question  which  may  be  the  subject  of  an  action  or 


230         INDUSTRIAL    ARBITRATION 

proceeding  in  a  court,"  exists  between  an  employer 
and  his  employees,  it  is  the  duty  of  the  Ohio  board 
to  "visit  the  locality  of  the  dispute,  make  careful  in- 
vestigation into  the  causes  thereof,  hear  all  parties 
interested  therein  who  come  or  are  subpoenaed  be- 
fore It,  and  advise  the  respective  parties  what,  if 
anything,  ought  to  be  done  or  submitted  to  by  either 
or  both  such  parties  to  adjust  the  dispute."  A  de- 
cision must  be  made  public  by  the  board  "if  it  fails 
to  bring  about  an  adjustment  of  such  differences." 

Vermont  requires  the  decision  to  set  forth  which 
party  is  mainly  responsible. 

Illinois  and  Oklahoma  make  an  investigation 
without  application  from  either  party  optional  with 
the  board.  When  the  general  public  is  likely  to  suf- 
fer inconvenience  "with  respect  to  food,  fuel  or 
light,  or  the  means  of  communication  or  transporta- 
tion, or  in  any  other  respect,"  even  though  neither 
party  consents  to  submit  the  case  to  arbitration,  it  is 
the  duty  of  the  Illinois  board  to  proceed  on  Its  own 
motion  to  an  investigation  and  make  a  finding  "with 
such  recommendations  to  the  parties  involved  as  in 
Its  judgment  will  contribute  to  a  fair  and  equitable 
settlement  of  the  differences  which  constitute  the 
cause  of  the  strike  or  lockout." 


LEGISLATION    IN    UNITED    STATES      231 

Even  though  neither  party  will  consent  to  arbi- 
tration in  Oklahoma,  the  board  of  its  own  motion 
may  "make  an  investigation  of  all  facts  bearing  upon 
such  strike  or  lockout  and  make  public  its  findings, 
with  such  recommendations  to  the  parties  involved 
as,  in  its  judgment,  will  contribute  to  a  fair  and 
equitable  settlement  of  the  differences." 

Under  similar  conditions  the  New  Hampshire  la- 
bor commissioner  may  investigate  all  the  facts  sur- 
rounding a  strike  or  lockout,  fix  the  responsibility 
and  publish  findings. 

Of  the  states  not  having  state  boards,  Colorado 
makes  it  the  duty  of  the  deputy  state  labor  com- 
missioner, upon  learning  of  an  industrial  dispute,  to 
make  a  careful  inquiry  and  advise  the  respective  par- 
ties "what,  if  anything,  ought  to  be  done  or  sub- 
mitted to  by  both,  to  adjust  said  disputes." 

Investigation  is  optional  with  the  board  of  arbi- 
tration in  Connecticut  and  Minnesota.  In  Minne- 
sota, the  board  may  "fix  the  responsibility"  for  the 
continuance  of  a  strike  and  publish  the  facts.  Inves- 
tigation is  optional  with  the  governor  in  Alabama 
and  Nebraska  and  optional  with  the  commissioner 
of  labor  in  New  York. 

The  board  of  arbitration  may  make  an  investiga- 


232         INDUSTRIAL    ARBITRATION 

tion  at  its  option  on  application  of  either  disputant 
in  California,  Maine  and  Montana.  Montana  re- 
quires the  board  to  make  public  its  decision  if  an  in- 
vestigation is  made.  Maine  makes  it  necessary,  fol- 
lowing an  investigation,  to  advise  each  party  what 
ought  to  be  done.  Louisiana  makes  an  investiga- 
tion mandatory,  if  either  party  applies  for  arbitra- 
tion, and  the  publication  of  the  report  as  to  which 
party  is  mainly  responsible. 

There  can  be  no  investigation  without  a  submis- 
sion of  the  cause  to  arbitration  under  the  laws  of 
Kansas,  Pennsylvania,  Nevada  and  Texas.  These 
states,  it  will  be  remembered,  provide  for  local 
boards  only. 

When  the  state  is  a  stockholder  or  creditor  of  any 
concern  threatened  or  affected  by  a  strike  or  lockout, 
the  board  of  works  has  power  at  its  discretion  in 
Maryland  to  make  an  investigation  of  facts  and  sub- 
mit a  report  to  the  next  general  assembly.  Investi- 
gation is  incidental  to  mediation  in  Utah.  It  is  the 
duty  of  the  Washington  labor  commissioner,  when 
arbitration  fails,  to  request  a  sworn  statement  of 
facts  from  each  party  and  reasons  for  not  submitting 
the  cause  to  arbitration. 

Section  14  of  the  Massachusetts  act  provides  for 


LEGISLATION    IN    UNITED    STATES      233 

expert  assistance  to  the  state  board  of  conciliation 
and  arbitration.    The  section  is  as  follows : 

"In  all  controversies  between  an  employer  and  his 
employees  in  which  application  is  made  under  the 
provisions  of  the  preceding  section,  each  party  may, 
in  writing,  nominate  fit  persons  to  act  in  the  case  as 
expert  assistants  to  the  board  and  the  board  may  ap- 
point one  from  among  the  persons  so  nominated  by 
each  party.  Said  experts  shall  be  skilled  in  and 
conversant  with  the  business  or  trade  concerning 
which  the  controversy  exists,  they  shall  be  sworn  by 
a  member  of  the  board  to  the  faithful  performance 
of  their  official  duties  and  a  record  of  their  appoint- 
ment shall  be  made  in  the  case.  Said  experts  shall,  if 
required,  attend  the  sessions  of  the  board,  and  shall, 
under  the  direction  of  the  board,  obtain  and  report 
information  concerning  the  wages  paid  and  the  meth- 
ods and  grades  of  work  prevailing  in  establishments 
within  the  Commonwealth  similar  to  that  in  which  the 
controversy  exists,  and  they  may  submit  to  the  board 
at  any  time  before  a  final  decision  any  facts,  advice, 
arguments  or  suggestions  which  they  may  consider 
applicable  to  the  case.  No  decision  of  said  board 
shall  be  announced  in  a  case  in  which  said  experts 
have  acted  without  notice  to  them  of  a  time  and 
place  for  a  final  conference  on  the  matters  included 
in  the  proposed  decision.  Such  experts  shall  receive 
from  the  Commonwealth  seven  dollars  each  for  every 
day  of  actual  service  and  their  necessary  traveling 
expenses.  The  board  may  appoint  such  other  addi- 
tional experts  as  it  considers  necessary,  who  shall  be 
qualified  in  like  manner  and,  under  the  direction  of 


234      industrial;  arbitration 

the  board,  shall  perform  like  duties  and  be  paid  the 
same  fees  as  the  experts  who  are  nominated  by  the 
parties," 

Montana  also  has  a  provision  for  expert  assist- 
ance. The  law  provides  that  after  notice  of  hearing 
has  been  given,  each  party  may  nominate  in  writing 
one  person  and  the  board  may  appoint  two  persons 
to  act  "as  expert  assistants  to  the  board."  The  two 
persons  so  appointed  "shall  be  skilled  in  and  con- 
versant with  the  business  or  trade  concerning  which 
the  dispute  has  arisen."  It  Is  their  duty,  under  the 
direction  of  the  board,  "to  obtain  and  report  to  the 
board,  information  concerning  the  wages  paid,  the 
hours  of  labor  and  the  methods  and  grades  of  work 
prevailing  in  manufacturing  establishments,  or  other 
industries  or  occupations."  Other  experts  may  be 
appointed  by  the  board. 

Vermont  provides  for  expert  assistance  to  the 
board  and  the  section  Is  the  same  as  the  Massachu- 
setts act,  except  that  the  compensation  of  assistants 
is  fixed  by  the  board. 

The  significance  of  such  a  clause  Is  obvious. 
Rarely  are  permanent  boards  of  arbitration  chosen 
for  their  Interest  In  or  acquaintance  with  work- 
ing conditions.  Generally,  they  are  politicians  who 
know  no  more  ab"out  scientific  methods  of  attacking 


LEGISLATION    IN    UNITED    STATES      235 

an  industrial  dispute  than  they  know  about  attack- 
ing scientifically  any  other  economic  or  social  prob- 
lem. Expert  assistants  may  avoid  their  natural 
difficulties  on  account  of  ignorance  of  and  want  of 
sympathy  with  the  problem  they  have  in  hand. 

When  application  for  arbitration  is  mutual,  the 
award  is  binding  upon  both  parties  in  Massachu- 
setts, Minnesota,  Missouri,  Montana,  New  Hamp- 
shire and  New  York.  The  decision  of  the  board 
of  arbitrators  is  enforceable  in  the  courts  of  Ohio, 
where  a  joint  application  "may  contain  a  stipula- 
tion that  a  decision  of  the  board  under  it  shall  be 
binding  upon  the  parties  to  the  extent  stipulated." 

Eight  states  having  state  boards  of  arbitration — 
Massachusetts,  California,  Illinois,  Maine,  Minne- 
sota, Montana,  New  Hampshire  and  Vermont — make 
the  decision  of  the  board  of  arbitration  binding 
on  parties  who  join  in  the  application  for  six 
months,  or  until  either  party  has  given  the  other 
written  notice  of  his  intentions  not  to  be  further 
bound  after  the  expiration  of  sixty  days.  California 
permits  the  parties  to  agree  upon  the  period  in  which 
the  award  shall  be  binding.  To  enforce  the  deci- 
sion In  Illinois,  a  copy  is  filed  with  the  clerk  of 
the  circuit  court  where  the  offending  party  resides 
and  the  judge  is  required  to  grant  a  rule  against 


236         INDUSTRIAL    ARBITRATION 

the  party  to  show  cause  in  ten  days  why  the  de- 
cision has  not  been  complied  with.  The  judge  may 
punish  the  offending  party  for  contempt. 

Five  states  having  state  boards  of  arbitration — 
Alabama,  Connecticut,  Louisiana,  Nebraska  and 
Oklahoma — do  not  have  any  provision  for  a  bind- 
ing and  enforceable  award.  In  Alabama,  the  rec- 
ommendati6n  of  the  board  and  its  decision  must 
be  filed  with  the  governor. 

Three  states  having  local  boards  or  provision  for 
the  same — Colorado,  Washington  and  Wisconsin — 
make  no  provision  for  a  binding  and  enforceable 
award. 

An  agreement  for  arbitration  has  the  effect  of 
an  agreement  to  abide  by  and  perform  the  award 
in  Idaho.  The  agreement,  however,  is  voluntary. 
The  parties  must  agree  to  abide  by  the  determina- 
tion of  the  board  in  Pennsylvania,  and  Ohio  per- 
mits joint  applications  to  contain  a  stipulation  that 
the  decision  of  the  board  under  it  shall  be  binding 
upon  the  parties  to  the  extent  so  stipulated,  in  which 
case  it  may  be  enforced  in  the  court  of  common  pleas 
as  a  statutory  award.  Utah  permits  applications  to 
contain  a  promise  to  abide  by  the  decision  of  the 
board. 

Decisions    made   by   boards   of   arbitration    date 


LEGISLATION    IN    UNITED    STATES      237 

from  the  appointment  of  the  board  and  are  binding 
upon  the  parties  who  join  in  an  application  for  one 
year,  in  Iowa. 

Decisions  are  final  and  binding  in  Missouri  when 
application  for  arbitration  is  mutual  and  final  and 
binding  where  either  party  refuses  to  agree  to  arbi- 
trate, unless  exceptions  are  filed  with  the  clerk  of 
the  board  within  five  days  after  the  decision  is  ren- 
dered. Missouri  punishes  violations  of  the  board's 
decision  by  a  fine  of  not  less  than  fifty  dollars  nor 
more  than  one  hundred  dollars,  or  by  imprisonment 
In  jail  not  exceeding  six  months,  or  by  both  fine 
and  imprisonment.  Agreements  to  arbitrate  in 
Texas  must  stipulate  that  the  award  is  final  and 
binding  unless  set  aside  for  error  of  law.  Employ- 
ees dissatisfied  with  an  award  must  agree  not  to 
quit  service  until  after  thirty  days'  notice.  The 
award  is  effective  one  year.  It  must  be  filed  in  the 
district  clerk's  office  and  is  operative  ten  days  from 
filing  unless  exceptions  for  matter  of  law  are  made, 
when  it  is  effective  after  these  exceptions  are  dis- 
posed of.  Judgment  is  entered  on  the  award  at 
that  time  unless  appeal  is  taken  to  a  court  of  civil 
appeals,  the  determination  of  which  is  final.  Ne- 
vada has  essentially  the  same  provision  as  Texas, 
except  that  no  notice  from  employees  is  required. 


238        INDUSTRIAL    ARBITRATION 

Awards  made  by  judges  or  justices  of  the  peace 
in  Maryland  are  enforceable  as  a  judgment  of  the 
court. 

The  power  of  boards  of  arbitration  to  compel  the 
attendance  of  witnesses,  once  uncertain,  has  been 
established  by  numerous  decisions  of  the  lower  and 
higher  courts. 


CHAPTER  X 

SOME  DEVICES   IN  OPERATION 

DURING  the  quarter  century  from  1881  to 
1905,  there  were  in  the  United  States  nearly 
thirty-seven  thousand  strikes,  according  to  the 
Twenty-first  Annual  Report  of  the  Bureau  of  La- 
bor,'^ involving  one  hundred  eighty-one  thousand 
establishments,  six  and  three-quarters  million  stri- 
kers and  eight  and  three-quarters  million  employees 
thrown  out  of  work.  The  table  on  page  248  shows 
the  number  of  strikes  in  each  state  of  the  union 
during  the  quarter-century  period. 

The  report  shows  eight  states  each  as  having  had 
more  than  one  thousand  strikes  during  the  period. 
New  York  had  the  largest  number,  a  total  of  10, 199 ; 
Pennsylvania  was  second  with  4,159;  Illinois  third 
with  3,624;  Massachusetts  fourth  with  2,774;  Ohio 
fifth  with  2,570;  New  Jersey  sixth  with  1,507;  In- 
diana seventh  with  1,126,  and  Missouri  eighth  with 
1,004.     The  prevalence  of  strikes  in  the  various 

'Pp.  18-19. 

239 


240         INDUSTRIAL    ARBITRATION 

states  of  the  union  has  not  changed  materially  since 
1905  and  these  figures  may  be  accepted  as  fairly  in- 
dicative of  the  seat  of  the  greatest  industrial  unrest 
at  the  present  time. 

Of  the  eight  states  reporting  more  than  one  thou- 
sand strikes,  six  states — New  York,  Illinois,  Massa- 
chusetts, Ohio,  New  Jersey  and  Missouri  maintained 
state  boards  of  conciliation  and  arbitration  during 
the  greater  part  of  this  period.  The  New  York  and 
Massachusetts  boards  were  created  in  1886,  the  Mis- 
souri board  in  1889,  the  New  Jersey  board  in  1892, 
the  Ohio  board  in  1893  and  the  Illinois  board  in 
1895.  During  this  entire  period  Pennsylvania  had 
provision  for  local  arbitration  by  temporary  boards 
only.  Indiana  had  no  legislation  until  1897,  when 
a  labor  commission  act  was  passed. 

Some  comparisons  based  on  the  latest  figures  ob- 
tainable show  that  the  United  States  has  more 
strikes  for  a  given  number  of  industrial  workers 
than  Great  Britain,  France  or  Germany.  In  1905 
there  was  one  strike  in  the  United  States  for  every 
5,705  industrial  workers  (census  of  1910).  In 
1907  there  was  one  strike  in  Germany  for  each 
6,502  industrial  workers.  In  1906  there  was  one 
strike  in  France  to  every  6,990  industrial  workers 
and  in   191 1  there  was  in  Great  Britain  one  strike 


SOME    DEVICES    IN    OPERATION     241 

for  every  14,608  industrial  workers.  By  industrial 
workers  are  meant  all  persons  engaged  in  trade  and 
transportation,  manufacturing,  mining  and  quarry- 
ing, mechanical  and  commercial  pursuits. 

Six  states  of  this  country  maintaining  state  boards 
of  conciliation  and  arbitration  during  the  greater 
part  of  the  quarter  century  have  been  and  are  con- 
spicuously industrial  states.  Reports  from  all  state 
boards  show  the  boards  in  these  six  states  to  have 
been  most  active  during  the  period  and  subsequently. 
Figures  taken  from  annual  reports  of  state  boards 
in  five  states  indicate  the  success  of  conciliation  and 
arbitration  by  state  boards  for  stated  periods : 

TABLE  NO.  11 

Inter-  Succes-  Unsuc- 

State                        Period        Strikes   vened  ful  cessful 

Massachusetts    ...   1886-1911        4,024      1,893  1,157  462 

New  York 1886-1911        8,265         756  255  501 

Ohio  1893-1906          784        191  72  81* 

(   1896-1899  ) 

Illinois ]    1902-1904^       121           94  43  36* 

(   1905-1910  ) 

a/t:          •  S    1901-1904   )         ..  .q  ^,  ^c 

Missoun •?    i907_i908   \        "^  ^°  ^^  ^^ 

Total 13,255      2,992      1,550      1,115 

•Preliminary  action  only  in  remainder. 

This  table  shows  a  total  of  more  than  thirteen 
thousand  strikes  in  the  five  states  during  the  stated 
periods,  but  there  were  interventions  by  state  boards 


242         INDUSTRIAL   ARBITRATION 


in  less  than  three  thousand  strikes  or  twenty-two 
per  cent,  of  the  total.  Of  these  interventions  only 
one  thousand  five  hundred  fifty  or  fifty-one  per 
cent,  were  successful  in  ending  strikes. 

TABLE  NO.  12 

SUMMARY  OF  INTERVENTIONS  BY   NEW  YORK  BOARD* 

Interventions  and  Settlements  Compared  with  Total  Strikes 
and  Lockouts 


Total 

Strikes  and 

Lockouts 

Reported 

lnter\ 

.rentions 

Settle 

ments 

Period 

Per  100 

Per  100 

Number 

Strikes  and 
Lockouts 

Number 

Strikes  and 
Lockouts 

1886.... 

350 

7 

2.0 

7 

2.0 

1887.... 

520 

14 

2.7 

4 

.8 

1888.... 

283 

17 

6.0 

8 

2.8 

1889.... 

437 

16 

3.7 

5 

1.1 

1890. . . . 

822 

17 

2.1 

7 

.9 

1891.... 

769 

7 

.9 

1 

.1 

1892.... 

465 

11 

2.4 

4 

.9 

1893.... 

387 

10 

2.6 

4 

1.0 

1894.... 

424 

18 

4.2 

12 

2.8 

1895.... 

362 

27 

7.5 

7 

1.0 

1896. . . . 

216 

17 

7.9 

4 

1.9 

1897.... 

248 

30 

12.1 

16 

6.5 

1898.... 

280 

19 

6.8 

11 

3.9 

1899.... 

299 

31 

10.4 

17 

5.7 

1900.... 

327 

33 

10.1 

12 

3.7 

1901 .... 

126 

17 

13.5 

6 

4.8 

1902.... 

142 

32 

22.5 

12 

8.5 

1903.... 

202 

28 

13.9 

8 

4.0 

1904.... 

124 

8 

6.5 

3 

2.4 

1905.... 

154 

10 

6.5 

6 

3.9 

1906.... 

245 

20 

8.2 

6 

2.4 

1907.... 

282 

54 

19.1 

17 

6.0 

1908.... 

160 

68 

42.5 

16 

10.0 

1909. . . . 

176 

77 

43.8 

19 

10.8 

1910.... 

250 

92 

36.8 

22 

8.8 

1911.... 

215 

76 

35.3 

21 

9.8 

*  Annual  Report  of  New  York  Bureau  of  Mediation  and  Arbitration, 
1911,  p.  461. 


SOME    DEVICES    IN    OPERATION     243 

More  than  anything  else,  these  figures  show  that, 
viewed  in  the  most  favorable  light,  conciliation  and 
arbitration  by  state  boards  has  not  been  satisfactory. 
Less  than  five  per  cent,  of  the  strikes  and  lockouts 
from  1 88 1  to  1905  were  settled  by  arbitration.  Con- 
ciliation and  arbitration  by  state  boards  has  proved 
most  effective  in  those  states  where  a  great  many 
strikes  occur  every  year  and  where  a  state  board  of 
conciliation  and  arbitration  is  moved  by  continual 
unrest  to  familiarize  itself  with  every  phase  of  the 
labor  question.  There  is  no  doubt  that  the  contin- 
ual activity  of  a  state  board  has  a  wholesome  in- 
fluence on  both  parties  to  an  industrial  controversy 
and  tends  to  create  a  compromising  attitude  among 
employers  as  well  as  among  wage  earners. 

For  instance,  the  Massachusetts  board,  in  sum- 
ming up  its  work  for  a  quarter  of  a  century  said 
In  its  report  for  the  year  ending  December  31,  1910: 

"The  first  years  of  the  board  passed  in  unremit- 
ting endeavor  to  stem  a  flood  of  trouble  with  a  sys- 
tem of  moral  suasion.  The  counsels  of  peace  gained 
a  respectful  hearing  and  substantial  improvements 
were  obtained  as  experience  accumulated.  In  de- 
fault of  a  joint  submission  to  a  disinterested  tri- 
bunal, the  parties  were  persuaded  to  confer  in  the 
presence  of  the  board.  Negotiations  became  the 
habit  which  produced  a  friendly  frame  of  mind.  The 
educative  eflfect  upon  the  rising  generation  of  work- 


H4 


INDUSTRIAL    ARBITRATION 


men  can  not  be  overestimated.  Strikes  were  settled ; 
controversies  determined  and  adversaries  reconciled ; 
and  the  agreements  thus  composing  the  difficulties 
suggested  the  prevention  of  those  that  would  arise 
in  the  future.  It  was  in  that  way  that  the  trade 
agreement  developed.  Friendly  inclinations  of  em- 
ployer and  employee  which  find  expression  in  such 
an  instrument  of  good  will  have  been  fostered  by 
the  board  from  the  beginning." 

The  report  of  the  Massachusetts  Bureau  of  Sta- 
tistics of  Labor  for  191 2  shows  that  a  larger  num- 
ber of  workmen  were  involved  in  strikes  than  in 
any  other  year  since  1881,  when  statistics  were  first 
compiled.  The  strikers  numbered  over  forty-eight 
thousand,  as  compared  with  forty-four  thousand  in 
1894,  the  next  highest  year.     The  total  number  of 


TABLE  NO.  13 

WORK    OF    MASSACHUSETTS    STATE    BOARD    OF    CONCILIATION    AND 
ARBITRATION  FOR  SEVEN  YEARS,  1905-1911* 


Year 

Number 
of  Strikes 

and 
Lockouts 

Number  of 

Employees 

Involved 

Inter- 
ventions 

Settled 
by  Arbi- 
tration 

Settled 
Mutu- 
ally or 
Other- 
wise 

Pend- 
ing at 
Closeof 
Year 

1905.... 
1906. . . . 
1907.... 
1908.... 
1909.... 
1910.... 
1911.... 

201 

213 
236 
98 
183 
243 
222 

15,865 

26,738 
27,665 
22,546 
21,563 
27,176 

72 
93 
139 
155 
104 
208 
179 

53 

80 

15 

122 

84 

181 

162 

16 
12 

7 
13 

5 

23 
13 

3 
1 

15 

20 

15 

4 

*  Compiled  from  reports  of  state  board  and  bureau  of  statistics. 


SOME    DEVICES    IN    OPERATION     245 

people  thrown  out  of  work  as  the  result  of  strikes 
was  ninety-five  thousand. 

The  five  great  strikes  were,  that  of  the  Lawrence 
textile  workers,  against  a  reduction  of  wages  when 
the  fifty-four-hour  law  went  into  effect  in  January, 
1912,  and  which  cost  five  million  dollars;  that  of 
the  Lowell  cotton-mill  operatives,  for  an  advance 
in  wages  above  that  determined  upon  by  the  mill ; 
that  of  the  New  Bedford  weavers,  for  abolition  of 
the  grading  system;  that  of  the  Boston  longshore- 
men, for  an  increase  In  wages  and  that  of  the  Boston 
street  railway  employees,  for  the  right  to  organize. 

One  of  these  strikes,  the  Boston  street  railway 
strike,  was  settled  by  the  state  board  but  largely 
through  the  Influence  of  the  governor  and  mayor. 
The  board  was  powerless  to  deal  with  the  textile 
workers'  strike  just  as  state  boards  almost  always 
are  when  conditions  are  permitted  to  become  acute. 
Furthermore,  public  opinion  is  far  more  active  when 
the  operation  of  a  public  utility  Is  concerned.  The 
people  of  Boston  were  Intimately  concerned  with 
the  operation  of  the  street  railways  because,  when 
cars  ceased  running  In  Boston,  every  citizen  was  di- 
rectly affected.  Not  so  with  the  cotton-mills.  The 
public  was  only  remotely  affected,  or  not  at  all. 

In  1907,  there  were  four  serious  strikes  In  New 


246         INDUSTRIAL    ARBITRATION 

York  in  which  the  state  board  failed  to  accomplish 
anything  of  consequence.  The  strike  of  the  long- 
shoremen of  Manhattan  and  Brooklyn  lasted  more 
than  a  month  and  was  lost  by  the  strikers.  Six 
thousand  union  painters  were  on  a  strike  for  two 
and  one-half  months.  Nine  hundred  drivers  of  the 
New  York  City  street  cleaning  department  were  on 
a  strike  during  the  last  week  of  June,  1907,  but 
returned  to  work  upon  the  agreement  of  Mayor 
Gaynor  to  make  an  investigation.  The  Yonkers 
street  railway  strike  was  settled  by  a  committee  of 
ministers. 

In  1908,  there  was  a  bothersome  strike  of  the  New 
York  City  taxicab  drivers  and  in  1909  a  strike  of 
the  bakers.  The  cloak  makers'  and  expressmen's 
strikes  occurred  in  1910  as  well  as  the  strike  at  the 
sugar  refineries  at  Williamsburg. 

Although  state  boards  of  conciliation  and  arbitra- 
tion are  generally  incapable  of  dealing  with  strikes 
of  large  proportions — involving  thousands  of  work- 
ers scattered  over  a  vast  territory — the  report  of  the 
Missouri  board  for  1908  expressed  an  optimistic 
view : 

"Never  since  its  creation  has  a  greater  labor  trou- 
ble occurring  in  any  part  of  the  state,  threatening 
either  life  or  property  or  both,  been  brought  to  the 


SOME    DEVICES    IN    OPERATION     247 

attention  of  this  board,  in  which  a  peaceful  settle- 
ment has  not  been  effected." 

The  first  Connecticut  state  board  of  arbitration, 
created  in  1895,  was  a  pronounced  failure,  partially 
because  the  board  construed  its  power  to  be  limited 
to  intervention  only  after  joint  application  by  em- 
ployer and  employee.  Yet  Connecticut  had  more 
strikes  from  1881  to  1905  than  any  other  state  ex- 
cept the  eight  already  named.  The  total  number 
was  nine  hundred  thirty.  The  board  was  revived  in 
1903  and  in  eight  typical  years"  out  of  forty-six 
strikes,  only  four  were  settled  by  the  state  board. 
Ten  were  settled  independently  of  the  board. 

In  its  1906  report  the  board  remarked: 

"Reviewing  the  labor  situation  in  the  light  of 
three  and  one-half  years'  exjDerience  of  the  board 
as  at  present  constituted,  it  must  be  stated  that  there 
is  not  apparent  any  increased  disposition  on  the  part 
of  either  employer  or  employees  to  submit  their  dif- 
ferences for  adjudication  to  any  outside  tribunal 
whatever.  Nor  does  there  appear  to  be  any  dis- 
position on  the  part  of  either  party  to  call  in  the 
aid  of  representatives  of  the  general  public,  official 
or  otherwise,  in  their  earlier  stages  of  trouble,  when 
it  might  be  possible  to  correct  misapprehension,  al- 
lay discontent  and  so  forestall  and  prevent  such 
violent  measures  as  Interruption  of  work,  with  con- 
sequent injurious  result  to  all  concerned.     In  gen- 

'  1903,  1904,  1905,  1906,  1907,  1908,  1909  and  1910. 


248 


INDUSTRIAL    ARBITRATION 


eral,  it  is  only  when  one  or  the  other  of  the  parties 
to  a  labor  dispute  feels  that  it  is  in  danger  of  losing 
all  for  which  it  is  contending  that  it  turns  with 
favoring  thought  to  the  resource  afforded  by  media- 
tion or  arbitration,  in  the  hope  that  thereby  some- 
thing may  be  saved  for  it,  either  a  material  advan- 
tage or  strategic  position," 


TABLE  NO.  14 

STRIKES,   ESTABLISHMENTS   INVOLVED,   STRIKERS,   AND   EMPLOYEES 
THROWN    OUT   OF   WORK,    BY    STATES    AND   GEOGRAPH- 
ICAL DIVISIONS,   1881  TO  1905 


Strikes 

Establish- 
ments 

Strikers 

Employees 
Thrown  Out  Of 

Work 

State  and  Geo- 
graphical Division 

Number 

Number 

Number 

>  1- 

Alabama    

Arizona   

Arkansas   

California   

Colorado   

Connecticut  .. . 

Delaware  

Dist.  of  Coluin. 

Florida  

Georgia    

Idaho    

Illinois    

Indiana    

Indian  Terr. . . 
Iowa  

296 

15 

69 

638 

378 

930 

T] 

121 

415 

263 

21 

3,624 

1,126 

13 

446 

175 

405 

209 

238 

384 

2,774 

1Z1 

28 

175 

3,357 

3,663 

2,111 

279 

785 

1,360 

715 

27 

29,176 

3,533 

1,706 
477 

1,345 

2.098 
431 

1,565 
10,099 

2,409 

2.5 
1.9 
2.5 
5.3 
9.7 
2.3 
3.6 
6.5 
Z.Z 
2.7 
1.3 
8.1 
3.1 
4.8 
3.8 
2.7 
Z.Z 
1.0 
1.8 
4.1 

z.e 

3.8 

63,038 

3,118 
10,529 
84,747 
85,382 
60,468 

6,632 
10,525 
87,905 
29,976 

3,555 
895,593 
160,847 

6,625 
70,241 
28,914 

82,008 
24,132 
64,563 
353,436 
98,067 

213 
208 
153 
133 
226 
65 
86 
87 
212 
114 
169 
247 
143 
510 
157 
165 
157 
392 
101 
168 
127 
154 

80,151 

4,324 

11,323 

102,880 

93,435 

96,310 

9,832 
11,437 
98,673 
36,840 

4,085 

1,207,000 

222,496 

7,603 
79,515 
36,991 
69,934 
87,901 
42,407 
75,962 
520,827 
135,784 

271 
288 
164 
161 
247 
104 
128 
95 
238 
140 
195 
iiZ 
198 
585 
178 

Kansas    

Kentucky  

Louisiana    

Maine  

Maryland 

Massachusetts  . 
Michigan 

211 
173 
421 
178 
198 
188 
213 

SOME    DEVICES    IN    OPERATION     249 


Establish- 

Strikers 

Employees 
Thrown  Out  Of 

Strikes 

ments 

Work 

State  and  Geo- 

^^ *" 

-  ^ 

<u 

graphical  Division 

Number 

Number 

Number 

<f2 

Minnesota  

535 

2,435 

4.6 

74,441 

139 

89,105 

167 

Mississippi    . . . 

32 

87 

2.7 

2,517 

79 

2,904 

93 

Missouri    

1,004 

6,496 

6.5 

152,413 

152 

177,062 

176 

Montana    

132 

230 

1.7 

14,183 

107 

*19,158 

*146 

Nebraska 

109 

498 

4.6 

19,128 

175 

28,933 

265 

Nevada 

4 

5 

1.3 

240 

60 

242 

61 

New  H'm'sh're 

188 

283 

1.5 

13,675 

73 

31,334 

167 

New  Jersey... 

1,507 

6,722 

4.5 

182,924 

121 

257,840 

171 

New   Mexico.. 

29 

45 

1.6 

4,154 

143 

4,764 

164 

Nev/    York 

10,199 

51,597 

5.1 

1,422,778 

140 

11,674,290 

tl64 

N.   Carolina... 

28 

49 

1.8 

4,219 

151 

5,277 

188 

North  Dakota. 

26 

34 

1.3 

2,074 

80 

2,084 

80 

Ohio  

2,570 

10,207 

4.0 

427,720 

166 

583,931 

227 

Oklahoma 

13 

34 

2.6 

782 

60 

846 

65 

Oregon  

77 

678 

8.8 

14,685 

191 

19,025 

247 

Pennsylvania   . 

4,159 

24,985 

6.0 

1,690,414 

406 

2,242,934 

539 

Rhode  Island.. 

369 

1,376 

3.7 

34,762 

94 

65,186 

177 

S.    Carolina... 

38 

101 

2.7 

1       3,833 

101 

4,173 

110 

South  Dakota. 

22 

40 

1.8 

1,372 

62 

1,429 

65 

Tennessee  .... 

449 

1,239 

2.8 

61,025 

136 

72,403 

161 

Texas  

322 

1,343 

4.2 

31,557 

98 

34,967 

109 

Utah  

63 

248 

3.9 

5,071 

80 

6,630 

105 

Vermont    

68 

490 

7.2 

10,790 

159 

12,056 

177 

Virginia   

214 

667 

3.1 

32,213 

151 

45,898 

214 

VV^ashington    . . 

214 

879 

4.1 

21,410 

100 

24,808 

116 

West    Virginia 

292 

1,128 

3.9 

100,879 

345 

126,457 

433 

Wisconsin 

799 

3,402 

4.3 

99,224 

124 

126,400 

158 

Wyoming 

41 

60 

1.5 
4.9 

5,527 

135 

7,898 

193 

Total 

36,7S7 

181,407 

6,728,048 

183 

$8,703,824 

$237 

North   Atlantic 

20,432 

98,004 

4.8 

3,793,379 

186 

t4,943,184 

t242 

South    Atlantic 

1,832 

6,649 

3.6 

340,745 

186 

414,549 

226 

North  Central. 

11,073 

60,413 

5.5 

2,030,034 

183 

2,690,730 

243 

South  Central. 

1,808 

7,121 

3.9 

321,818 

178 

368,112 

204 

Western  

1,612 

9,220 

5.7 

242,072 

150 

*287,249 

*178 

*Not  including  1  strike  involving  12  establishments  not  reported. 
tNot  including  1  strike  involving  21  establishments  not  reported. 
JNot  including  2  strikes  involving  33  establishments  not  reported. 


250 


INDUSTRIAL    ARBITRATION 


TABLE  NO.  15 

LOCKOUTS,   ESTABLISHMENTS    INVOLVED,    EMPLOYEES    LOCKED    OUT, 

AND  EMPLOYEES  THROWN   OUT  OF  WORK,  BY   STATES   AND 

GEOGRAPHICAL  DIVISIONS,    1881   TO    1905 


State  and  Geograph- 
ical Division 


Alabama    

Arizona   

Arkansas   

California   

Colorado   

Connecticut    

Delaware  

Dist.  of  Columbia 

Florida  

Georgia   

Idaho    

Illinois   

Indiana    

Indian  Territory.. 

Iowa  

Kansas   

Kentucky 

Louisiana    

Maine  

Maryland 

Massachusetts   . . . 

Michigan  

Minnesota 

Missouri    

Montana    

Nebraska  

New  Hampshire.. 

New  Jersey 

New  Mexico 

New   York 

North  Carolina. . . 

North  Dakota 

Oliio   

Oklahoma  


5 
41 
23 
68 

1 

3 
16 
14 

1 

141 

53 

1 
23 

5 
20 

5 
11 
17 
128 
44 
33 
40 

7 

7 

7 
55 

1 
326 

3 

3 
110 

2 


Establish- 
ments 


11 
1 

14 

241 

63 

207 

1 

41 

88 

109 

6 

4,555 

233 

39 

131 

9 

31 

29 

86 

62 

825 

241 

155 

103 

24 

90 

45 

946 

1 

6,422 

21 

3 

386 

27 


<H-1 


1.6 
1.0 
2.8 
5.9 
2.7 
3.0 
1.0 

13.7 
5.5 
7.8 
6.0 

32.3 
4.4 

39.0 
5.7 
1 

1.6 
5.8 
7.8 
3.6 
6.4 
5.5 
4.7 
2.6 
3.4 

12.9 
6.4 

17.2 
1.0 

19.7 
7.0 
1.0 
3.5 

13.5 


Employees 
Locked  Out 


885 

15 

102 

7,763 

3,870 

25,382 

188 

252 

9,958 

10,192 

3,000 

188,849 

4,373 

732 

2,788 

2.516 

1,612 

1,286 

6,951 

2,061 

40,113 

7,047 

2,276 

5,508 

1,164 

2,821 

1.504 

20,397 

200 

222,853 

1,252 

15 

23,876 

409 


I.  3 
4)  O 


<h-l 


126 

15 

20 
189 
168 
373 
188 

84 

622 

728 

3,000 

1,339 

83 
732 
121 
503 

81 
257 
632 
121 
313 
160 

69 
138 
166 
403 
215 
371 
200 
684 
417 
5 
217 
205 


Employees 

Thrown  Out 

of  Work 


887 

15 

102 

8,039 

4,064 

26,156 

188 

382 

11,865 

10,199 

3,000 

218,285 

4,630 

732 

3,328 

5,103 

2,046 

1,596 

6,968 

2,606 

42,298 

8,543 

3,682 

5,544 

1,695 

2,921 

2,121 

21,741 

200 

269,415 

1,402 

15 

25,922 

409 


<i-i 

127 

15 

20 

196 

177 

385 

188 

127 

742 

729 

3,000 

1,548 

87 

732 

145 

1,021 

102 

319 

633 

153 

330 

194 

112 

139 

242 

417 

303 

395 

200 

826 

467 

5 

236 

205 


SOME    DEVICES    IN    OPERATION     251 


Establish- 

Employees 

Employees 

ments 

Locked  Out 

of  Work 

State  and  Geograph- 

ical Division 

3 

I-  3 

1-  3 

Ut 

>-  3 

0 

.0 

Q  0 

XI 

<u  0 

0  0 

.^ 

a 

D.^ 

a 

Ovid 

a 

o-M    ■ 

0 

3 

>  0 

3 

>  0 

3 

■>  0 

h-1 

^5 

<a 

z 

<>A 

z 

<h1 

Oregon  

4 

81 

20.3 

1,020 

255 

1,020 

255 

Pennsylvania    .... 

164 

2,276 

13.9 

70,543 

430 

84,374 

514 

Rhode   Island 

8 

66 

8.3 

13,377 

1,672 

13,377 

1,672 

South  Carolina. . . 

3 

18 

6.0 

837 

279 

837 

279 

South   Dakota 

2 

2 

1.0 

73 

37 

73 

37 

Tennessee  

28 

37 

1.3 

2,096 

75 

2,138 

76 

Texas  

19 

132 

69 

1,821 

96 

2,026 

107 

Utah  

3 

12 

4.0 

329 

110 

345 

115 

Vermont    

5 

394 

78.8 

8,058 

1,612 

8,073 

1,615 

Virginia   

23 

51 

2.2 

4,322 

188 

4,408 

192 

Washington    

16 

112 

7.0 

1,770 

111 

1,785 

112 

West  Virginia 

12 

19 

1.6 

4,125 

344 

4,910 

409 

Wisconsin  

35 

99 

2.8 

5,319 

152 

5,814 

166 

Wyoming 

2 
1,546 

2 

1.0 
12.0 

331 

166 
463 

331 

166 

Total  

18,547 

716,231 

825.610 

534 

North   Atlantic... 

772 

11,267 

14.6 

409,178 

530 

474,523 

615 

South  Atlantic 

92 

410 

4.5 

33,187 

361 

36,797 

400 

North  Central 

496 

6,007 

12.1 

245.461 

495 

283,860 

572 

South  Central 

87 

320 

3.7 

8,943 

103 

9,936 

114 

Western   

99 

543 

5.5 

19,462 

197 

20,494 

207 

The  statute  establishing  a  state  board  of  arbitra- 
tion in  California  in  1891  was  not  indorsed  by  the 
California  labor  organizations.^  It  was  passed  by 
the  efforts  of  the  state  labor  commissioners  and  un- 
dertook to  "create  a  new  Institution  rather  than  to 
embody  or  regulate  what  already  existed  as  the  nat- 
ural   outgrowth   of   actual    experiences,    and,    as   is 


^  Eaves,  A  History  of  California  Labor  Legislation,  1910, 
p.  379. 


?52         INDUSTRIAL    ARBITRATION 

often  the  case  with  such  theoretical  legislation,  it 
has  failed  to  meet  the  actual  social  need  for  which 
it  was  designed." 

The  Federated  Trade  Councils  of  San  Francisco 
opposed  a  bill  similar  to  the  New  York  statute  on 
the  grounds  that  the  political  obligations  Incurred 
by  the  governor  would  prevent  him  from  appointing 
arbitrators  entirely  unbiased  with  regard  to  labor 
disputes ;  labor  commissioners  with  balance  of  power 
might  be  susceptible  to  corrupt  influence;  no  way 
was  open  to  enforce  the  decisions  of  the  board ;  and 
the  provision  requiring  both  parties  to  wait  three 
weeks  for  a  decision  of  the  board  would  result  dis- 
astrously to  working  men,  as  it  would  enable  the 
employer  to  arm  himself  for  a  strike  If  one  were 
called/ 

As  passed,  the  law  provided  for  a  board  of  three 
members,  the  third  being  a  disinterested  person. 
Only  two  trivial  controversies  were  settled  the  first 
year  and  In  Its  first  annual  report  the  board  an- 
nounced that  "arbitration  as  a  means  of  settling  dif- 
ferences between  employers  and  employees,  and  pre- 
venting, to  some  extent,  strikes  and  lockouts,  is 
almost  Impossible  under  the  provisions  of  the  pres- 

*  Jbid, 


SOME    DEVICES    IN    OPERATION     253 

ent  laws."  The  board  had  no  power  of  conciliation 
and  no  power  to  examine  witnesses  under  oath. 
Amendments  to  the  act  were  urged. 

In  the  second  and  last  report  of  the  board,  pub- 
lished in  1894,  the  board  said  that  although  there 
had  been  difficulties  in  which  their  mediation  might 
have  been  beneficial,  they  had  not  been  called  upon 
to  settle  any  controversies  and  had  nothing  to  re- 
port. There  were  six  hundred  thirty-eight  strikes 
and  forty-one  lockouts  in  California  from  1 881  to 
1905. 

Following  the  San  Francisco  teamsters'  strike  in 
1901,  agitation  for  a  more  effective  law  was  revived 
and  Governor  Gage,  in  his  second  biennial  mes- 
sage, urged  the  passage  of  a  law  adding  the  gov- 
ernor and  labor  commissioners  to  the  board.  He 
believed  public  opinion  would  force  disputants  to 
refer  disputes  to  the  board,  whose  decision  should 
be  binding. 

The  arbitration  law  is  still  in  effect  but  no  use  is 
being  made  of  It.  A  bill  for  a  new  act  was  Intro- 
duced in  1907,  but  was  vigorously  opposed  by  or- 
ganized labor  and  failed  to  make  any  progress. 

There  is  a  group  of  four  states,  Louisiana,  Min- 
nesota, Montana  and  Utah,  where  practically  nothing 


254        INDUSTRIAL    ARBITRATION 

has  been  accomplished  by  state  boards  of  concilia- 
tion and  arbitration  although  the  boards  were  cre- 
ated many  years  ago. 

The  Louisiana  board  was  created  in  1894,  the 
Minnesota  board  in  1895,  the  Montana  board  in 
1887  and  the  Utah  board  in  1896. 

Generally  speaking,  the  boards  have  failed  to  ac- 
complish anything  in  these  states  partially  because, 
with  one  exception,  Minnesota,  industrial  disturb- 
ances have  been  rare  and  there  has  been  no  oppor- 
tunity to  build  up  a  permanent  machinery  for 
adjudicating  strikes  and  lockouts.  There  was 
an  average  of  about  six  strikes  and  lockouts  a  year 
each  in  Louisiana,  Montana  and  Utah  for  the  pe- 
riod from  1 88 1  to  1905.  Minnesota  had  five  hun- 
dred thirty-five  strikes  and  thirty-three  lockouts  for 
the  twenty-five-year  period,  but  after  one  decision 
by  the  Minnesota  board,  created  in  1895,  and  un- 
satisfactory to  both  parties,  no  appointments  were 
made  under  the  act  until  1901.  The  switchmen's 
strike  of  1910  was  submitted  to  the  Minnesota  board 
but  it  accomplished  nothing  toward  a  settlement. 
Governor  Johnson  intervened  in  the  strike  of  the 
dockmen,  employed  on  Lake  Superior,  in  1907  and 
brought  about  a  settlement,  as  well  as  a  settlement 
in  the  strike  of  ten  thousand  mine  workers  the  same 


SOME    DEVICES    IN    OPERATION     255 

year.  The  Montana  act  has  always  been  a  dead 
letter  and  the  Utah  board,  established  in  1896,  never 
made  a  report.  In  the  last  half  dozen  years,  it  has 
been  called  together  but  once  and  then  its  services 
were  refused  by  the  contending  parties.  The  Lou- 
isiana board  disbanded  shortly  after  its  creation  and 
nothing  has  ever  been  accomplished  under  the  act. 
There  is  another  group  of  four  states  where  con- 
ciliation and  arbitration  laws,  once  in  force,  have 
been  repealed:  Michigan,  New  Jersey,  North  Da- 
kota and  Indiana.  Although  Michigan  created  a 
state  board  in  1899,  no  appointments  were  made 
under  the  act  until  1897  and  this  statute  was  re- 
pealed in  191 1,  because  the  board  became  an  instru- 
ment for  the  convenience  of  partisan  politicians 
rather  than  an  agency  for  industrial  peace.  State 
boards  of  arbitration  have  failed  frequently  because 
they  are  made  up  of  partisan  politicians  who  have 
in  mind  the  attainment  of  some  political  advantage 
to  the  party  they  represent  rather  than  an  unselfish 
spirit  of  fairness  and  a  desire  to  do  the  specific 
thing  they  are  charged  with  doing — devise  a  plan 
of  settlement  that  will  be  acceptable  to  both  parties. 

*'We  all  know  that,  as  at  present  constituted,  they 
have  proven  far  from  satisfactory  as  a  means  of 
dealing  effectively  with  labor  disputes,"  said  a  trade 


256         INDUSTRIAL    ARBITRATION 

union  leader  several  years  ago.^  "Almost  invaria- 
bly, they  savor  more  or  less,  in  their  complexion, 
of  partisan  politics,  and  do  not  possess  the  complete 
confidence  of  either  one  or  the  other  factor  in  in- 
dustry. As  a  result,  they  are  very  rarely  appealed 
to  by  the  two  parties  interested  in  a  dispute." 

In  his  Methods  of  Industry^  Gillman  expresses 
the  opinion  that  if  state  boards  "were  better  paid, 
made  up  of  abler  men,  and  entirely  free  from  pol- 
itics, they  might  do  much  more,  but  on  the  whole 
they  are  not  taken  seriously  by  the  public  or  by  the 
disputors.  Where  they  have  accomplished  the  most 
their  accomplishments  seem  slight  by  the  side  of 
what  is  desirable  in  the  way  of  preventing  labor 
troubles." 

The  New  Jersey  acts  of  1880  and  1886  still  re- 
main but  they  provide  only  for  local  arbitration 
through  private  agencies  and  have  been  altogether 
futile.  The  New  Jersey  act  of  1892,  by  which  a 
state  board  of  arbitration  was  created,  with  its 
amendments  of  1895,  was  repealed  in  1908,  largely 
for  the  reason  that  in  the  latter  years  the  board  did 
not  accomplish  anything.     In   1904,  the  board  of- 


"  Martin  Fox,  president  of  the  Iron  Moulders*  Union,  before 
Industrial  Conciliation  Conference  of  National  Civic  Federa- 
tion. 

'  P.  345. 


SOME    DEVICES    IN    OPERATION     257 

fered  Its  services  In  "more  than  150  disputes,"^  but 
none  of  the  labor  disagreements  of  that  year  was 
arbitrated  by  It. 

According  to  the  report  of  1905,  "in  a  number 
of  Instances  where  strikes  or  lockouts  were  threat- 
ened In  New  Jersey,  the  services  of  the  state  board 
of  arbitration  were  proffered.  .  .  .  but  the  good 
offices  of  the  board  were  declined,  as  has  been  the 
case  of  late  years."® 

Nothing  was  accomplished  under  the  North  Da- 
kota act  of  1890,  which  made  it  the  duty  of  the  com- 
missioner of  agriculture  and  labor  to  mediate  in 
Industrial  disputes  when  requested  to  do  so  by  the 
parties  to  the  controversy,  but  North  Dakota  is  and 
has  always  been  an  agricultural  state  where  there 
are  very  few  Industrial  controversies.  In  twenty- 
five  years  from  1881  to  1905  there  were  only  twen- 
ty-six strikes  and  but  three  lockouts  in  the  state. 

The  Indiana  Labor  Commission,  in  existence  from 
1897  to  191 1,  enjoyed  considerable  success  in  the 
adjudication  of  Industrial  disputes.  In  six  typical 
years, ^  there  were  one  hundred  seven  strikes  and 
lockouts  In  which  the  board  intervened.     It  was  suc- 


''  Annual  Report  of  the  State  Board  of  Arbitration,  p.  5. 
^Report  of  the  State  Board  of  Arbitration,  1905,  p.  5. 
•  1897,  1898,  1899,  1900,  1907  and  1-908. 


258         INDUSTRIAL    ARBITRATION 

cessful  in  the  settlement  of  seventy-two  and  failed 
in  twenty-four  cases.  Eleven  strikes  were  settled 
independently  of  the  commission. 

"The  most  formidable  obstacles  to  settlements 
have  not  generally  come  from  either  the  employer 
or  employee,  but  more  frequently  from  intermed- 
dling third  persons,"  the  commission  said  in  its  first 
biennial  report.^''  "Of  these,  the  first  are  demagog- 
ical politicians,  who  either  pose  as  the  'friend'  of 
'oppressed  labor'  and  proffer  sympathy  and  advice 
in  the  hope  of  being  able  to  secure  support  in  their 
political  aspirations;  or  seek  to  gain  for  their  polit- 
ical party  some  temporary  advantage  by  espousing 
one  or  the  other  side  of  a  labor  trouble.  Mostly 
their  proneness  is  to  appeal  to  baser  sentiments  and 
by  playing  on  the  irascibility  of  excited  strikers  gain 
a  temporary  prominence  which  they  hope  to  turn  to 
selfish  gain, 

"The  second  are  the  superserviceable  labor  agi- 
tators, whose  zealous  and  often  honest  efforts  are 
excited  in  trying  to  promote  legitimate  ends  by  un- 
wise counsels.  Usually  their  sympathy  is  genuine 
and  their  motives  commendable  but  they  are  at  no 
pains  to  inform  themselves  of  the  facts  which  are 
essential  to  an  accurate  knowledge  and  mature  judg- 
ments.^^ 

"The  importation  of  working  men  (otherwise 
strikebreakers)  in  large  numbers  to  take  the  place 
of  home  workmen,"  is  noted  by  the  commission. 
"The  imported  men  were  of  the  lowest  grade  intel- 
lectually and  morally  and  were  armed  to  the  teeth 


"  Report  of  1897-98,  pp.  7-8. 
, .  "  Report  of  1897-98,  p.  10. 


SOME    DEVICES    IN    OPERx\TION     259 

by  the  company  importing  them,"  says  the  report/^ 
"It  may  well  be  doubted,"  the  report  continues,  "if 
this  importation  can  be  justified  under  any  circum- 
stances, and  the  evil  results  which  might  grow  out 
of  such  an  act  greatly  overbalance  any  possible  good 
which  could  be  realized.  Prohibitive  legislation  on 
this  subject  seems  imperative." 

The  report  for  the  years  1909-10  was  the  last 
ever  made  since  the  labor  commission  was  abolished 
by  the  so-called  bureau  of  inspection  act  of  191 1. 
The  repeal  of  the  act  was  effected  largely  through 
the  influence  of  the  Indiana  State  Federation  of 
Labor,  which,  at  its  Lafayette  convention  in  1910,^^ 
declared  in  favor  of  the  consolidation  of  several 
minor  state  departments,  including  that  of  the  bu- 
reau of  statistics,  factory  inspection,  and  the  labor 
commission,  into  a  department  of  labor.  The  result- 
ing act  of  191 1,  however,  was  but  a  partial  realiza- 
tion of  the  expressed  demand  of  the  State  Federation 
of  Labor.  Conciliation  and  arbitration  were  over- 
looked almost  altogether  in  the  new  act. 

In  1915,  Indiana  passed  a  new  law  providing  for 
the  appointment  of  temporary  boards  by  the  gov- 
ernor. Since  it  can  not  be  supposed  that  arbitrators 
so  named  will  use  much  above  the  standard  of  hack 


"  Ibid.,  p.  11. 

"  Official  Proceedings  of  the  26th  Annual  Convention  of  the 
Indiana  State  Federation  of  Labor,  p.  34, 


26o         INDUSTRIAL    ARBITRATION 

politicians,  the  law  is  valueless.  Temporary  boards 
should  be  constituted  by  the  parties  themselves,  since 
either  side  is  able  to  repudiate  an  arbitration  board 
appointed  by  political  authority,  and  will,  if  dis- 
pleased with  its  personnel.  The  theory  of  the  In- 
diana law,  if  any  theory  was  thought  of  by  its 
f  ramers,  is  untenable. 

Finally,  of  the  states  where  conciliation  and  arbi- 
tration by  state  boards  has  been  tried  there  are  six 
states  in  the  union  where  boards  have  been  created 
recently  and  where  little  data  Is  available  to  indicate 
the  success  or  failure  of  the  scheme.  These  states 
are  Oklahoma,  New  Hampshire,  Alabama,  Maine, 
Nebraska  and  Vermont. 

The  Oklahoma  act  of  1907  was  pronounced  "per- 
fectly satisfactory"  by  the  commissioner  of  labor. 
"The  department  has  been  successful,"  he  says,  "in 
adjusting  all  labor  disputes  without  the  necessity 
of  the  board,"  and  "about  the  only  trouble  we  find 
in  the  operation  of  the  act  is  that  we  never  are  ad- 
vised of  any  trouble  until  after  the  men  are  out  on 
strike."  The  act,  however,  makes  it  mandatory  on 
different  parties  interested  and  the  justice  of  the 
peace  to  notify  the  board  of  Impending  trouble. 

Under  the  New  Hampshire  act  of  191 1  the  com- 
missioner of  labor  Is  mediator  in  industrial  disputes. 


SOME    DEVICES    IN    OPERATION     261 

From  the  passage  of  the  act  to  April  i,  191 4,  the 
commissioner  of  labor  was  called  upon  fourteen 
times  to  use  his  offices.  Twelve  cases  were  settled 
peacefully  and  one  case  was  pending  on  April  i, 
19 14.  The  state  board  of  arbitration  was  called 
upon  in  one  case  to  fix  the  price  for  piece  work  in  a 
certain  operation  in  a  shoe  factory. 

The  Alabama  act  was  passed  in  191 1,  three  years 
after  a  disastrous  strike  in  the  coal  mines  of  that 
state  in  which  several  persons  were  killed.  The 
Vermont  act  was  passed  in  19 12,  three  years  after 
a  strike  of  five  thousand  granite  workers  at  Barre. 
No  meeting  of  the  Nebraska  board,  created  in  191 3, 
had  been  held  up  to  April  i,  19 14.  There  was  a 
strike  of  the  Omaha  street  railway  employees  in 
1909. 

Very  little  has  ever  been  accomplished  under  the 
conciliation  and  arbitration  laws  of  those  states  pro- 
viding for  local  arbitration  through  temporary- 
boards.  These  states  are  Maryland,  Pennsylvania, 
Texas,  Washington,  Colorado,  Iowa,  Kansas,  Ne- 
vada and  Idaho. 

The  most  glaring  objection  to  this  system,  per- 
haps, is  the  lack  of  any  one  officially  charged  with 
the  duty  of  bringing  employer  and  employee  to- 
gether for  conciliation  or  arbitration.     Also,  in  the 


262         INDUSTRIAL    ARBITRATION 

absence  of  an  official  mediator  at  the  outset  of  a 
controversy,  the  time  for  conciliation  or  arbitration 
passes  quickly  because  hostility  increases  as  the 
strike  or  lockout  is  prolonged. 

Pennsylvania  is  the  one  state,  where  local  arbi- 
tration has  prevailed,  that  had  more  than  five  hun- 
dred strikes  and  lockouts  during  the  period  from 
1 88 1  to  1905.  Labor  conditions  in  Pennsylvania 
are  perhaps  the  most  complex  of  any  state  in  the 
union  due  to  the  medley  of  foreign-born  workers  en- 
gaged in  the  iron  and  steel  mills  and  coal  mines. 

Very  little  was  ever  accomplished  under  the  vol- 
untary trade  tribunals  act  of  Pennsylvania  of  1883, 
nor  a  subsequent  act  passed  in  1893,  according  to 
the  Pennsylvania  commissioner  of  labor.  A  chief 
of  the  Pennsylvania  Bureau  of  Industrial  Statistics 
had  "no  knowledge  of  any  effort  to  make  use  of  the 
act  of  1893"  in  that  state.  Two  serious  strikes  oc- 
curred in  Pennsylvania  in  1 909,  that  of  seven  thou- 
sand shirt-waist  workers  in  Philadelphia  and  of  five 
thousand  unskilled  employees  of  the  Pressed  Steel 
Car  Company  at  McKeesport.  The  latter  was  one 
of  the  most  dramatic  strikes  of  the  year.  A  major- 
ity of  the  strikers  were  foreigners  and  many  could 
not  speak  English.  They  were  without  the  leader- 
ship of  a  trade  union.    The  strike  lasted  eight  weeks. 


SOME    DEVICES    IN    OPERATION     263 

An  investigation  by  the  Department  of  Commerce 
and  Labor  revealed  a  startling  condition  of  intimi- 
dation by  company  officials.  The  strikers  obtained 
important  concessions,  including  a  material  advance 
in  wages.  The  Philadelphia  street  railway  strike 
began  at  election  time  and  continued  until  the  fol- 
lowing year.  The  Philadelphia  Central  Labor  Un- 
ion ordered  a  general  strike  and  about  sixty  thou- 
sand men  responded  to  the  call.  The  strike  was 
lost.  A  strike  of  the  Westmoreland  County  coal 
miners,  which  began  in  March,  1910,  and  which  in- 
volved seventeen  thousand  men,  lasted  until  July, 
1911. 

The  mediation  bureau  of  the  Pennsylvania  De- 
partment of  Labor,  created  in  191 3,  within  a  few 
months  was  instrumental  in  settling  a  great  many 
strikes  directly  and  indirectly,  bringing  the  parties 
together  for  settlement,  as  well  as  preventing  a  num- 
ber of  strikes  through  mediation  which  might 
otherwise  have  materialized,  according  to  the  Penn- 
sylvania commissioner  of  labor  in  19 14.  The 
department  has  been  instrumental  in  saving  many 
thousands  of  dollars  in  the  adjustment  of  labor  trou- 
bles since  it  was  organized.  But  the  department  has 
been  organized  less  than  three  years  and  that  is  too 
soon  to  record  much  of  a  showing;  still,  the  media- 


264         INDUSTRIAL    ARBITRATION 

tion  bureau  has  been  of  incalculable  service,  saving 
to  the  state  many  times  its  cost  of  maintenance. 

While  there  were  numerous  strikes  in  Maryland, 
Texas,  Colorado  and  Iowa  during  the  period  the 
number  does  not  compare  with  that  in  those  states 
where  state  boards  were  active  from  1 88 1  to  1905. 
Washington  had  on  an  average  of  less  than  ten  a 
year,  Kansas  seven,  Idaho  less  than  one  and  Ne- 
vada only  four  for  the  entire  period. 

The  Maryland  act  of  1878,  according  to  the  chief 
of  the  Maryland  Bureau  of  Industrial  Statistics,  has 
"never  been  availed  of." 

Five  years  after  the  Texas  law  of  1895  was 
passed,  neither  the  commissioner  of  agriculture  nor 
the  attorney  general  had  any  knowledge  that  the 
law  was  in  force.^*  A  Texas  commissioner  of  labor 
statistics  was  "not  aware  of  any  case  where  the  act 
of  1895  providing  for  boards  of  arbitration  has  ever 
been  invoked  in  any  controversy  between  the  em- 
ployers and  the  employees  in  that  state." 

"We  have  no  knowledge  of  any  law  being  passed 
in  this  state  regarding  industrial  arbitration,"  a 
Washington  commissioner  of  labor  said  in  response 
to  an  inquiry  as  to  the  success  of  the  Washington 
act  of  1903. 

"  Bulletin  of  The  Bureau  of  Labor  No.  60,  in  House  Docu- 
ments, Vol.  31,  p.  607. 


SOME    DEVICES    IN    OPERATION     265 

Colorado  first  provided  for  industrial  arbitration 
in  1887.  This  act  was  superseded  by  the  act  of 
1897,  creating  a  state  board  of  arbitration,  which 
was  repealed  in  1909,  "because  of  its  proving  in- 
effective," according  to  a  deputy  state  labor  com- 
missioner. A  new  act  of  1909  created  the  office  of 
deputy  labor  commissioner  with  powers  of  media- 
tion and  the  formation  of  local  boards  on  consent 
of  both  parties.  The  new  law  has  not  proved  ef- 
fective. The  deputy  labor  commissioner  is  "a  firm 
believer  In  compulsory  arbitration."  The  Colorado 
coal  strike  of  1913-1914  was  the  most  disastrous  to 
life  and  property  ever  known  in  that  state,  and  prob- 
ably attracted  wider  attention  than  any  other  in  the 
entire  history  of  this  country. 

Only  one  attempt  at  adjustment  has  been  made 
under  the  Iowa  act  to  191 3,  that  being  the  case  of 
the  Oskaloosa  Light  and  Traction  Company  against 
the  Amalgamated  Association  of  Street  and  Electric 
Railway  Employees.  Two  judges  and  a  business 
■man  were  the  arbitrators  and  decided  all  points  in 
favor  of  the  men,  with  the  exception  of  that  of 
wages,  which  was  to  be  submitted  to  further  arbitra- 
tion. "The  company  has  thus  far  refused  to  carry 
out  the  decision,"  according  to  the  Iowa  commis- 
gioner  of  labor, 


266         INDUSTRIAL    ARBITRATION 

The  Kansas  commissioner  of  labor  is  authority 
for  the  statement  that  the  act  of  1886  has  "never 
been  made  use  of  in  any  dispute  which  has  arisen 
since  its  enactment."  Nevada's  conciliation  and  ar- 
bitration act  was  passed  subsequent  to  the  1907 
strike  at  Goldfield,  when  federal  troops  were  called 
out  and  after  the  legislature  had  been  called  into 
special  session. 

Idaho  copied  the  Massachusetts  act  in  1897  and 
in  1 901  substituted  the  Indiana  act  of  1897,  with 
minor  changes. 

Wisconsin's  state  board  of  arbitration,  created  in 
1895,  was  superseded  by  the  industrial  commission 
in  191 1.  In  a  dispute  between  the  Milwaukee  Elec- 
tric Railway  and  Light  Company  and  the  Amalga- 
mated Association  of  Street  and  Electric  Railway 
Employees,  the  commission  defined  its  powers  under 
the  act  of  191 1  to  include  that  of  conducting  inves- 
tigations and  hearings  and  publishing  reports  of 
their  findings  in  threatened  or  existing  strikes  and 
lockouts.  The  company  objected  to  the  examina- 
tion of  its  pay-rolls  for  the  purpose  of  a  public  find- 
ing, but  was  forced  to  accede  to  the  demands  of 
the  commission  when  informed  that  it  was  the  inten- 
tion of  the  commission  to  use  the  pay-rolls  for  the 
express  purpose  indicated.     Finally,  after  a  thor- 


SOME    DEVICES    IN    OPERATION     267 

ough  investigation,  the  recommendations  of  the 
commission  were  published,  but  not  until  the  wages 
of  the  trainmen  had  been  substantially  advanced. 

Only  the  pay-rolls  and  the  records  of  the  company 
relating  to  trainmen  were  examined  by  the  indus- 
trial commission.  The  company  refused  to  submit 
other  records.  Discussing  the  attitude  of  the  com- 
pany, the  commission  says  it  is  "of  the  opinion  that 
It  has  full  authority  to  make  Investigation  and  by 
subpcEna  compel  the  submission  of  the  books  of  the 
company  to  the  commission  for  such  purpose,  as  to 
all  of  Its  employees."  At  some  future  time  con- 
venient to  the  commission,  it  proposed  to  complete 
the  investigation  so  as  to  cover  all  employees  of  the 
company. 

Between  1895  and  1904,  while  Wisconsin  had  a 
state  board  of  arbitration,  there  were  one  hundred 
ninety-five  strikes  in  that  state,  of  which  number 
ninety-five  were  acted  upon  by  the  board.  Of  the 
ninety-five  cases  acted  upon,  there  was  preliminary 
work  done  In  twelve  cases.  The  board  was  success- 
ful In  the  settlement  of  forty  disputes  and  failed 
in  the  settlement  of  forty-three.  In  other  words. 
It  settled  forty-two  per  cent,  of  the  cases  where  It 
intervened  and  failed  In  fifty-eight  per  cent,  of  these 
cases. 


CHAPTER  XI 


INTERSTATE  STRIKES 


CONSTITUTIONAL  limitations  have  pre- 
vented the  federal  government  from  legally 
doing  more  than  "regulating"  the  instrumentalities 
and  agents  of  interstate  commerce  in  the  matter  of 
industrial  arbitration.  Federal  legislation  on  the 
subject  is  confined  practically  to  three  congressional 
acts  providing  for  arbitration  between  interstate 
carriers  and  their  employees.  These  acts  were 
passed  in  1888,  1898  and  1913. 

There  was  a  congressional  committee  which  in- 
vestigated the  Homestead  strike  at  Homestead, 
Pennsylvania,  in  1892,  and  a  commission,  author- 
ized under  the  act  of  1888,  which  reported  to  the 
president  on  the  Pullman  strike  at  Chicago,  No- 
vember 14,  1894,  but  the  latter  investigation  did 
not  begin  until  the  strike  was  ended.  ^  Likewise, 
there  was  the  Anthracite  Coal  Strike  Commission 
of  1902,  appointed  by  President  Roosevelt,  but  this 

^  Bulletin  of  Bureau  of  Labor  No.  60,  in  House  Documents, 
Vol.  81,  p.  573. 

263 


INTERSTATE    STRIKES  269 

commission  gave  an  award  that,  altHougH  it  was 
accepted  by  both  sides,  was  not  legally  binding. 

The  Industrial  Commission  of  1901  made  a  thor- 
ough investigation  of  strikes  and  lockouts  and  of 
arbitration  as  a  means  of  averting  controversies  be- 
tween employees  and  employers.  In  191 2,  Con- 
gress created  the  Industrial  Relations  Commission, 
charged  with  broad  powers  among  which  are  those 
of  inquiring  into  the  "general  condition  of  labor  in 
the  principal  industries  of  the  United  States;"  into 
the  "existing  relations  between  employers  and  em- 
ployees; into  the  effect  of  industrial  conditions  on 
the  public  welfare  and  into  the  rights  and  powers 
of  the  community  to  deal  therewith ;"  also  of  in- 
quiring "into  the  growth  of  associations  of  employ- 
ers and  wage  earners  and  the  effect  of  such  associa- 
tions upon  the  relations  between  employers  and 
employees ;  into  the  extent  and  results  of  methods 
of  collective  bargaining;  into  any  methods  which 
have  been  tried  in  any  state  or  in  foreign  countries 
for  maintaining  mutually  satisfactory  relations  be- 
tween employees  and  employers ;  into  methods  for 
avoiding  or  adjusting  labor  disputes  through  peace- 
ful and  conciliatory  mediation  and  negotiations." 
During  the  summer  of  1914,  the  commission  held 
a  series  of  hearings  on  conciliation  and  arbitration. 


270        INDUSTRIAL   ARBITRATION 

The  work  of  this  commission  has  been  spectacular 
in  the  extreme  but  none  the  less  effective.  Because 
its  chairman  is  a  man  not  only  of  invincible  courage 
but  of  almost  uncanny  understanding  of  industrial 
and  economic  principles  and  conditions,  the  Indus- 
trial Relations  Commission  has  turned  out  to  be  the 
most  irrepressible  agency  for  publicity  ever  devised 
in  this  country.  The  most  spectacular  thing  it  has 
done  was  to  lay  bare  the  shams  of  the  Rockefeller 
Foundation,  a  gigantic  creation  of  the  elder  Rock- 
efeller which  had  the  impudence  to  begin  a  nation- 
wide investigation  of  industrial  conditions  as  a 
masque  for  inhuman  conditions  in  the  Rockefeller 
coal  mines  of  Colorado. 

In  a  special  message  to  Congress  dated  April 
22,  1886,  President  Cleveland  urged  that  "some- 
thing must  be  done  under  Federal  authority  to  pre- 
vent the  disturbances  which  so  often  arise  from  dis- 
putes between  employers  and  the  employed,  and 
which  at  times  seriously  threaten  the  business  in- 
terests of  the  country."' 

"In  my  opinion,"  said  President  Cleveland,  "the 
proper  theory  upon  which  to  proceed  is  that  of  vol- 
untary arbitration  as  a  means  of  settling  these  diffi- 
culties."^ 


'  Message,  April  22,  1886. 
"Ibid. 


INTERSTATE    STRIKES  271 

"I  suggest,"  said  the  president,  "that  instead  of 
arbitrators  chosen  in  the  heat  of  conflicting  claims 
and  after  each  dispute  shall  arise  for  the  purpose 
of  determining  the  same,  there  be  created  a  Com- 
mission of  Labor  consisting  of  three  members  who 
shall  be  regular  officers  of  the  government,  charged 
among  other  duties  with  the  consideration  and  set- 
tlement, when  possible,  of  all  controversies  between 
labor  and  capital. 

"A  commission  thus  organized  would  have  the 
advantage  of  being  a  stable  body,  and  its  members 
as  they  gained  experience  would  constantly  Improve 
In  their  ability  to  deal  intelligently  and  usefully 
with  the  questions  which  might  be  submitted  to 
them.  If  arbitrators  are  chosen  for  temporary  serv^ 
Ice  as  each  case  or  dispute  arises,  experience  and 
familiarity  with  much  that  is  involved  in  the  ques- 
tion will  be  lacking,  extreme  partisanship  and  bias 
will  be  the  qualifications  sought  on  either  side  and 
frequent  complaints  of  unfairness  and  partiality  will 
be  inevitable.  The  imposition  upon  a  Federal  Court 
of  a  duty  so  foreign  to  the  judicial  function  as  the 
selection  of  an  arbitrator  In  such  cases,  Is  at  least 
doubtful  propriety."* 

In  speaking  of  the  probable  consequences  of  the 
failure  of  an  arbitration  board  to  enforce  its  de- 
cisions through  lack  of  power.  President  Cleveland 
thought  much  encouragement  was  derived  from  the 
"conceded    good"    accomplished   by   state    railroad 

*Ibid. 


272         INDUSTRIAL    ARBITRATION 

commissions,    having    "little    more    than    advisory 
powers."^ 

A  bureau  of  labor  had  been  created  in  July  1S84 
and  President  Cleveland  believed  a  commission 
could  "be  engrafted  upon  the  Bureau  thus  already 
organized  by  the  addition  of  two  more  commission- 
ers and  by  supplementing  the  duties  now  imposed 
upon  by  such  powers  and  functions,  as  would  per- 
mit the  commissioners  to  act  as  arbitrators,  when 
necessary  between  Labor  and  Capital,  under  such 
limitations  and  upon  such  occasions  as  should  be 
deemed  proper  and  useful."® 

"Power,"  he  said,  "should  also  be  distinctly  con- 
ferred upon  this  Bureau  to  investigate  the  causes 
of  all  disputes  as  they  occur,  whether  submitted  for 
arbitration  or  not,  so  that  information  may  always 
be  at  hand  to  aid  legislation  on  the  subject  when 
necessary  and  desirable."^ 

One  bill  providing  for  the  arbitration  of  disputes 
between  interstate  carriers  and  their  employees  was 
Introduced  In  the  Senate  and  three  in  the  House 
in  the  first  session  of  the  Forty-ninth  Congress.  The 
House  Committee  on  Labor  also  presented  a  bill 
as  a  substitute  for  that  introduced  by  Representative 


"  Ibid. 
Mbid. 
'  Ibid. 


INTERSTATE    STRIKES  273 

O'Neill,  of  Missouri.^  This  bill  passed  the  House 
and  was  debated  in  the  Senate.  In  the  second  ses- 
sion of  the  Forty-ninth  Congress  the  same  bill 
passed  tlie  Senate  but  it  reached  the  president  on 
March  I,  1887,  only  a  few  days  before  adjournment. 
It  did  not  meet  the  wishes  of  President  Cleveland 
and  did  not  receive  his  signature.®  The  president 
desired  a  measure  that  would  permit  the  government 
to  take  the  initiative  in  conciliation  and  arbitra- 
tion.^"' 

Senator  John  Sherman,  in  the  debate  on  this  bill, 
February  28,  1887,  argued  in  favor  of  a  commission 
of  two  senators,  three  representatives  and  seven 
members  from  civil  life  appointed  by  the  president 
with  power  to  make  a  broad  and  liberal  examina- 
tion "similar  to  those  which  have  been  authorized 
by  the  British  Parliament."^^  An  amendment  to 
this  effect,  however,  was  withdrawn  in  order  not  to 
defeat  the  bill  already  pending  for  passage. 

One  bill  was  introduced  in  the  Senate  during  the 
first  session  of  the  Fiftieth  Congress.  Representa- 
tive O'Neill,  of  Missouri,  presented  another  bill  also, 
similar  to  the  one  he  had  previously  presented.     It 


*49th  Congress,  1st  session  (see  index), 
*49th  Congress,  2nd  session  (see  index). 
"  Bulletin  of  Bureau  of  Labor  No.  60,  in  House  Documents, 
Vol.  81,  p.  571. 
"  Congressional  Record,  Senate,  Feb.  28,  1887. 


274        INDUSTRIAL   ARBITRATION 

provided  that  In  case  of  a  dispute  between  an  inter- 
state carrier  and  employees  a  board  of  arbitration 
might  be  appointed  on  application  of  one  party  to 
the  other,  if  the  second  party  agreed  to  a  board, 
the  two  arbitrators  to  choose  a  third.  The  board 
had  power  under  the  bill  to  subpoena  witnesses,  to 
compel  their  attendance  and  make  a  finding  of  facts. 
There  was  no  provision  to  make  the  decision  or 
award  binding.^" 

Another  provision  of  the  bill  gave  the  president 
power  to  appoint  two  disinterested  citizens,  one  of 
whom  was  required  to  be  a  resident  of  the  state 
where  the  controversy  arose,  who,  together  with  the 
commissioner  of  labor,  should  constitute  a  commis- 
sion to  make  a  full  investigation  and  report  on  dis- 
putes involving  an  interstate  carrier  and  its  em- 
ployees. The  services  of  this  commission  might  be 
tendered  the  parties  upon  application  of  either  or 
by  the  president  on  his  own  motion.  There  were 
no  provisions  for  formal  hearings.  This  bill  passed 
both  houses  of  Congress  and  was  signed  by  Presi- 
dent Cleveland  October  I,  1888.  The  only  opposi- 
tion It  encountered  was  from  a  few  members  of  both 
bodies  who  were  inclined  to  favor  a  "compulsory" 


'^  Congressional  Record,  House  and  Senate  50th  Congress, 
1st  session  (see  index). 


INTERSTATE    STRIKES  275 

clause  making  arbitration  necessary  and  awards 
binding/^ 

Four  years  after  the  passage  of  the  arbitration 
law  of  1888,  the  famous  strike  of  the  steel  workers 
at  Homestead,  Pennsylvania,  occurred,  and  a  con- 
gressional investigation  committee  made  an  exam- 
ination of  the  causes  surrounding  the  strike  and  the 
condition  of  employment  in  the  Carnegie  mills  at 
that  place.  There  was  a  demand  for  federal  legis- 
lation, looking  toward  the  settlement  of  such  contro- 
versies. 

In  a  magazine  article,^*  discussing  the  Homestead 
strike,  and  arbitration  generally,  Representative 
William  C.  Oates,  chairman  of  the  Congressional 
Investigation  Committee,  said: 

"Congress,  therefore,  has  no  power  to  interfere 
by  legislation  in  the  labor  troubles  at  Homestead 
nor  in  any  similar  ones  which  may  subsequently 
occur  there  or  elsewhere.  A  voluntary  arbitration 
law  was  passed  by  Congress  applicable  to  railroad 
strikes  and  there  is  one  in  Pennsylvania  applicable 
to  her  own  affairs  but  neither  of  them  is  of  practical 
utility.  Parties  will  not  have  recourse  to  that 
method  of  settlement  and  there  is  no  way  to  en- 
force the  award  when  rendered.  Nor  is  a  compul- 
sory arbitration  law  practicable.  Such  a  law  could 
only  be  enacted  by  the  State  and  compulsory  arbi- 

"50th  Congress,  1st  session  (see  index). 
^* North  American  Review,  September,  1892. 


276         INDUSTRIAL    ARBITRATION 

tratlon  would  be  no  arbitration  at  all  since  It  would 
at  once  be  the  exercise  of  judicial  power.  Courts 
can  afford  remedies  for  violated  contracts  but  in  a 
case  like  that  at  Homestead  where  the  parties  failed 
to  agree — where  they  failed  to  make  a  contract — 
if  the  State  could  invest  a  tribunal  with  authority 
to  step  in  and  say  that  the  proposition  of  the  Car- 
negie Company  was  reasonable  and  that  the  striking 
workmen  should  accept  and  go  to  work  thus  making 
for  them  a  contract  which  they  refused  to  make  and 
the  workmen  did  not  choose  to  obey  the  award,  how 
could  it  be  enforced? 

"No  legislative  authority  can  deprive  any  man 
of  the  right  to  contract  in  respect  to  his  own  private 
property  or  labor  and  without  his  consent  confer 
that  power  upon  another  person  or  tribunal.  His 
discretion  and  personal  right  can  not  be  thus  taken 
from  him  for  that  would  at  once  destroy  his  free- 
dom. 

"The  rights  of  property  and  personal  liberty  are 
secured  by  fundamental  laws  of  the  State  and  Na- 
tion just  as  they  were  by  the  English  Common  Law 
and  Magna  Charta  which  the  old  barons,  sword  in 
hand,  wrested  from  King  John  at  Runnymede." 

Two  years  after  the  Homestead  strike  occurred 
the  disastrous  strike  at  Pullman,  Illinois,  sometimes 
known  as  the  American  Railway  Union  strike.  It 
was  called  In  sympathy  with  the  workers  at  Pull- 
man, and  began  June  twenty-sixth  and  ended  July 
thirteenth.^^       On     July     twenty-sixth.     President 


"  Bulletin  of  Bureau  of  Labor  No.  60,  in  House  Documents, 
Vol.  81,  p.  573. 


INTERSTATE    STRIKES  277 

Cleveland  appointed  three  commissioners^®  to  ex- 
amine the  "causes  of  the  controversy,  the  conditions 
accompanying,  and  the  best  means  for  adjusting  it." 
Sessions  were  held  principally  at  Chicago. 

The  states  were  urged  to  adopt  some  system  of 
conciliation  and  arbitration  like  that  employed  by 
the  Massachusetts  state  board  and  to  make  illegal 
all  contracts  requiring  employees,  as  a  condition  of 
employment,  to  agree  to  leave  or  not  to  join  labor 
organizations.^^ 

Employers  were  urged  to  recognize  labor  organ- 
izations and  the  reciprocal  relations  of  employer 
and  employed  and  voluntarily  to  consider  the  inter- 
ests of  Labor  as  well  as  those  of  Capital. ^^ 

It  was  further  recommended  by  the  commission 
that  there  should  be  a  permanent  tribunal  always 
ready  to  deal  with  railroad  disputes;  that  such  a 
tribunal  should  have  power  to  intervene  on  its  own 
motion  as  well  as  upon  request  of  parties  to  the 
dispute;  that  it  should  aim  first  at  conciliation,  but 
where  that  failed  should  investigate  and  fix  respon- 


"  Carroll  D.  Wright,  U.  S.  Commissioner  of  Labor ;  John 
D.  Kernan,  of  New  York,  and  Nicholas  E.  Worthington,  of 
Illinois. 

"  Bulletin  of  Bureau  of  Labor  No.  60,  in  House  Documents, 
Vol.  81,  p.  573. 

"  Ibid. 


278         INDUSTRIAL    ARBITRATION 

sibility  for  the  dispute  in  a  published  report  for  the 
guidance  of  public  sentiment. 

This  commission  recommended  also  that  during 
the  pendency  of  a  proceeding  before  the  permanent 
tribunal,  a  strike  or  lockout  should  be  unlawful  and 
for  six  months  after  a  decision  had  been  rendered 
it  should  be  unlawful  for  the  railroad  to  discharge 
workmen  In  whose  places  others  were  to  be  em- 
ployed, except  for  inefficiency,  violation  of  law,  or 
neglect  of  duty,  and  for  said  employees  to  quit  the 
service  without  thirty  days*  notice  or  for  a  union 
to  order  or  counsel  otherwise.^'* 

Amendments  to  existing  statutes  to  require  that 
national  trade  unions  should  provide  in  their  ar- 
ticles of  incorporation,  and  in  their  constitutions, 
rules  and  by-laws  that  a  member  should  forfeit  all 
his  rights  and  privileges  as  such  for  participating 
in  or  instigating  force  or  violence  against  persons 
or  property  during  strikes  or  lockouts,  or  from  seek- 
ing to  prevent  others  from  working  by  violence, 
threats  or  intimidation  were  recommended  by  the 
Pullman  Investigating  Commission.^" 

Bills  were  before  Congress  at  every  session  after 
this  report  was  filed  until  1898  when  a  new  act  was 


"  Ibid.,  p.  574. 
*>  Ibid. 


INTERSTATE    STRIKES  279 

passed  superseding  that  of  1888.  The  new  law  pro- 
vided only  for  arbitration  and  conciliation  and  not 
investigation  and  publicity  as  under  the  act  of  1888. 

The  act  of  1898  provided  that  the  chairman  of 
the  Interstate  Commerce  Commission  and  the  com- 
missioner of  labor  should,  upon  request  of  either 
party  to  a  dispute  involving  steam  railroads,  at- 
tempt mediation  and  conciliation  and  if  unsuccessful 
to  attempt  to  obtain  arbitration.  This  act  made  it 
possible  to  submit  such  a  controversy  to  an  arbitra- 
tion board  consisting  of  one  member  selected  by  the 
commissioner,  one  selected  by  the  employees  and 
one  selected  by  the  other  two.  If  the  two  were  un- 
able to  agree,  the  act  made  it  the  duty  of  the  chair- 
man of  the  Interstate  Commerce  Commission  and 
the  commissioner  of  labor  together  to  name  a  third 
arbitrator. 

The  board  so  chosen  was  required  to  begin  a  hear- 
ing within  ten  days  after  the  appointment  of  a  third 
arbitrator  and  to  make  a  finding  and  award  within 
thirty  days  after  the  appointment  of  the  third  arbi- 
trator. The  status  prior  to  the  beginning  of  the  con- 
troversy had  to  be  maintained  but  no  employee 
could  be  compelled  to  render  personal  service  with- 
out his  consent.  A  majority  of  the  board  could 
make  a  valid  and  binding  award  which  had  the 


28o        INDUSTRIAL    ARBITRATION 

effect  of  a  bill  of  exceptions  and  was  required  to 
be  filed  with  the  clerk  of  the  United  States  Circuit 
Court  in  the  district  where  the  controversy  arose. 
It  was  final  and  conclusive  unless  set  aside  for  ap- 
parent error.  Judgment  on  the  award  was  entered 
in  ten  days  in  the  absence  of  any  appeal.  Judg- 
ment was  entered  otherwise  when  the  exceptions 
were  disposed  of  or  when  the  appeal  to  the  United 
States  Circuit  Court  of  Appeals  was  disposed  of. 
The  Injunction  or  other  legal  process  could  be  issued 
to  compel  the  performance  of  personal  labor  by  any 
laborer  but  no  employee  could  quit  the  service  of 
his  employer,  if  dissatisfied  with  the  award,  with- 
out giving  thirty  days'  notice,  and  no  employer 
could  dismiss  any  employee  without  giving  thirty 
days'  notice.  The  award  was  effective  for  one  year. 
It  was  not  binding  upon  individual  employees,  not 
members  of  the  labor  organization  agreeing  to  arbi- 
tration. 

The  act  provided  for  forfeiture  of  membership  in 
a  corporation  for  engaging  in  violence  during  a  boy- 
cott, strike  or  lockout  and  made  it  a  misdemeanor 
with  a  penalty  of  a  fine  of  from  one  hundred  dol- 
lars to  one  thousand  dollars  to  discriminate  against 
the  members  of  a  labor  union  or  organize  a  boycott. 

In  no  instance  did  employers  or  employees  ever 


INTERSTATE    STRIKES  281 

attempt  to  make  use  of  the  act  of  1888  but  the  act  of 
1898  was  more  successful. 

During-  the  first  eight  and  one-half  years  of  its 
operation  only  one  attempt  was  made  to  utilize  the 
provisions  of  the  Erdman"^  act.  This  attempt,  made 
within  a  year  after  its  passage,  involved  an  efifort  of 
conductors  and  brakemen  in  switching  service  at 
Pittsburgh  to  secure  an  increase  in  wages,  change  in 
working  conditions  and  a  reduction  of  hours.  Eight 
roads  were  Involved.  The  companies  refused  to  ar- 
bitrate under  the  Erdman  act  but  granted  an  in- 
crease in  v/ages  after  the  men  had  voted  to  strike.^^ 

The  second  case  under  the  act  was  a  dispute  be- 
tween the  Southern  Pacific  Railway  and  locomotive 
firemen  on  the  line  between  El  Paso  and  New  Or- 
leans In  1906.  This  case  was  settled  by  arbitra- 
tion.'^ 

From  1906  to  191 1  the  act  was  Invoked  in  about 
fifty  controversies  and  about  one  hundred  sixty  thou- 
sand employees  and  five  hundred  thousand  miles  of 
road  were  involved.'*  One  appeal  to  the  courts,  al- 
lowed by  the  act  of  1898,  was  taken,  but  the  litiga- 


"  So  called  from  its  author,  Rep.  Erdman,  of  Pennsylvania, 
although  he  was  not  a  member  of  the  Congress  which  passed 
the  3.ct 

"  Bulletin  of  Bureau  of  Labor  No.  98,  Vol.  24,  pp.  29-42. 

*•  Ibid.,  pp.  42-43. 

**  Ibid.,  pp.  1-2. 


282         INDUSTRIAL    ARBITRATION 

tion  was  dragged  along  until  an  agreement  finally 
was  reached  by  direct  negotiations.  Mediation 
proved  far  more  successful  under  the  Erdman  act 
than  arbitration,  the  latter  having  been  invoked  di- 
rectly but  four  times  during  the  entire  period  the 
statute  was  in  force.^^ 

In  three  cases  only  was  mediation  refused  under 
the  Erdman  act.  In  all  disputes  where  mediation 
was  accepted,  except  one,  there  was  an  amicable  set- 
tlement. This  strike  was  ordered  before  mediators 
were  called  in. 

In  191 1,  nearly  thirty-three  thousand  locomotive 
engineers  threatened  to  strike  but  the  difficulty  was 
adjusted  through  the  intercession  of  Commissioner 
Neill,  under  the  Erdman  act.  Wages  were  advanced 
a  little  more  than  ten  per  cent,  and  four  million  dol- 
lars were  added  to  the  annual  pay-roll  of  the  rail- 
roads. Differences  with  the  railroad  trainmen  and 
the  railway  conductors  were  settled  with  a  ten  per 
cent,  advance  in  wages  for  seventy-five  thousand 
conductors  and  trainmen  on  fifty-one  western  roads. 

The  engineers  on  fifty-two  eastern  roads  voted  to 
strike  in  January,  1912,  but  Commissioners  Neill 
and  Knapp  Intervened  and  obtained  an  agreement 
to  arbitrate  under  the   Erdman  act.      The  award, 

"^  Ibid.,  p.  Z% 


INTERSTATE    STRIKES  283 

which  was  given  in  November,  granted  an  increase 
in  pay  but  not  what  was  asked.  It  urged  the  com- 
pulsory adjustment  of  disputes  on  public  utilities  by 
states  or  a  national  wage  commission.  The  repre- 
sentative of  the  engineers  on  the  board  refused  to 
sign  the  award  because  of  this  recommendation. 

Conclusions  of  the  Industrial  Commission  of  1901 
which  made  an  exhaustive  study  of  strikes  and  lock- 
outs are  interesting.  Arbitration  and  conciliation 
laws  were  found  "effective  for  purpose  of  concilia- 
tion," but  according  to  the  commission,  "the  strict 
arbitration  machinery  rarely  functions  well." 

"The  arbitration  laws  now  existing,  particularly 
the  national  act  of  1898,  should  be  made  clear," 
said  the  Industrial  Commission,  "so  that  the  parties 
to  the  arbitration,  whether  employer  or  employee, 
should  appear  as  lawfully  constituted  associations  or 
corporations,  or  otherwise  as  individuals  with  proper 
machinery  for  representation  by  their  leaders ;  and 
the  Commission  believe  that  whoever  inaugurates 
a  lockout  or  strike  without  first  petitioning  for  arbi- 
tration, or  assenting  to  it  when  offered,  should  be 
subjected  to  an  appropriate  penalty.  The  object  of 
the  first  recommendation  Is  to  get  responsible  parties 
to  the  record,  and  to  make  sure  that  the  individuals 
concerned  in  the  difficulty  are  lawfully  represented 
in  the  proceedings;  and  the  object  of  the  second  rec- 
ommendation is  to  encourage  peaceable  adjustments 
of  differences  and  to  discourage  the  resort  to  strikes 
or  lockouts  until  legal  methods  have  been  tried.  The 


284        INDUSTRIAL    ARBITRATION 

statute  should  not  confine  arbitration  to  a  public 
board,  but  should  permit  the  parties  to  choose  arbi- 
trators if  they  prefer.  There  should  be  no  provision 
to  compel  either  side  to  abide  by  the  decision.  It  is 
believed  that  a  full  and  fair  investigation  of  the 
facts  will,  in  most  cases,  bring  the  parties  into  sub- 
stantial agreement,  while  in  other  cases  the  result 
may  be  safely  left  to  public  opinion." 

On  October  i6,  1902,  President  Roosevelt  ap- 
pointed the  Anthracite  Coal  Strike  Commission  after 
the  strike  had  lasted  from  May  12,  1902,  and  had 
cost  fifty  million  dollars.  Mine  owners  and  miners 
agreed  in  advance  to  abide  by  its  decision.  The 
miners  went  back  to  work  and  a  thorough  investiga- 
tion was  made.  The  report  was  filed  March  18, 
1903.  A  ten  per  cent.  Increase  In  wages  was  granted. 
Various  other  matters,  Including  employment  of 
check  weighmen  and  distribution  of  mine  cars,  were 
settled,  and  a  method  of  conciliation  provided  to  de- 
termine questions  on  the  interpretation  of  the  award. 
Strikes  and  lockouts  were  forbidden  during  the 
term  of  the  award.  The  right  to  discharge  employees 
without  reference  to  the  board  of  conciliation  re- 
mained with  the  employer.  The  right  to  discharge 
without  sufficient  cause  was  very  unfavorable  to  the 
miners.  An  open  shop  was  granted  but  no  person 
could  be  discriminated  against  because  of  member- 


INTERSTATE    STRIKES  2S5 

ship  in  a  labor  union.  The  award  was  effective  for 
a  period  of  three  years.  The  report  urged  that  the 
president  be  given  authority  to  appoint  a  commission 
for  compulsory  investigation  whenever  a  labor  con- 
troversy arose  to  threaten  interstate  commerce — 
amounting  to  a  revival  of  a  section  of  the  act  of  1888, 
but  not  included  in  the  act  of  1898. 

The  anthracite  conciliation  board  brought  about 
three  successive  agreements  of  three  years  each,  the 
last  expiring  April  i,  191 2.  During  the  first  three 
years,  the  board  dealt  with  one  hundred  forty-five 
grievances  and  from  1906  to  1912  with  forty-eight 
grievances.  Altogether  twenty-five  cases  were  re- 
ferred to  an  umpire,  who  was  a  federal  judge,  from 
1902  to  1912. 

Early  in  191 2,  the  anthracite  miners  demanded 
a  twenty  per  cent,  increase  in  wages.  There  was 
some  rioting  before  a  settlement  was  effected  when  a 
ten  per  cent,  increase  in  wages  and  a  grievance  com- 
mittee were  allowed.  Because  the  sliding  scale  was 
abolished  the  increase  amounted  to  a  net  gain  of 
five  and  one-half  per  cent.  An  immediate  increase 
of  twenty-five  cents  a  ton  in  the  price  of  coal  netted 
the  operators  about  five  million  dollars  above  the 
increase  in  wages  the  first  year. 

In  191 3,  a  new  arbitration  act  was  passed  super- 


286        INDUSTRIAL    ARBITRATION 

seding  the  act  of  1898.  It  likewise  exempted  street 
railways.  It  provides  for  a  board  of  mediation  and 
conciliation  consisting  of  a  commissioner  of  media- 
tion and  conciliation  appointed  by  the  president  for 
a  seven-year  term  and  two  other  officials  of  the  gov- 
ernment, who  have  been  appointed  by  the  president. 
The  commissioner  of  mediation  and  conciliation  re- 
ceives a  salary  of  seven  thousand  five  hundred  dol- 
lars a  year.  He  has  an  assistant,  appointed  by  the 
president,  with  a  salary  of  five  thousand  dollars  a 
year.  Either  party  to  a  controversy  involving  the 
transit  of  interstate  commodities  may  apply  to  this 
board  for  an  amicable  settlement  of  difficulties. 
Where  an  interruption  of  traffic  is  imminent  the 
board  may  offer  its  services  to  the  respective  parties. 
If  a  board  of  three  members  is  agreed  upon,  each 
party  selects  one  and  the  two  select  a  third  or  in 
their  failure  to  agree,  the  third  member  is  designated 
by  the  commissioner  of  mediation  and  conciliation. 
If  six  members  are  agreed  upon,  each  party  selects 
two  and  the  four  select  the  other  two  by  a  majority 
vote.  In  their  failure  to  agree  the  remaining  mem- 
ber or  members  may  be  designated  by  the  commis- 
sioner of  mediation  and  conciliation.  The  agree- 
ment to  arbitrate  shall  stipulate  that  a  majority  of 
the  board  shall  be  competent  to  make  a  valid  and 


INTERSTATE    STRIKES  287 

binding  award.  The  parties  may  ask  the  reconven- 
ing of  the  board  in  the  event  disputes  arise  after  the 
award  which  are  not  settled  by  it. 

Lately,  Congress  has  made  investigations  of  the 
Lawrence  textile  workers'  strike,  the  West  Virginia 
and  Colorado  coal  miners'  strikes  and  the  Calumet 
copper  mine  strike.  The  evidence  adduced  in  each 
case  disclosed  unspeakable  conditions  of  labor  but 
aside  from  creating  a  hostile  public  sentiment  against 
the  owners  and  operators  of  these  enterprises,  noth- 
ing resulted  from  the  legally-unwarranted  interfer- 
ence of  Congress.  No  legal  power  to  intervene  in 
such  strikes  is  vested  in  Congress. 


CHAPTER  XII 

THE   COLORADO   COAL   STRIKE 

THE  Colorado  coal  strike  of  191 3  and  1914 
was  merely  another  effort  on  the  part  of  the 
miners  to  obtain  for  themselves  a  consideration  of 
grievances,  long  standing  in  the  history  of  the  coal- 
mining industry.  Strikes  have  taken  place  in  the 
Colorado  field,  roughly  speaking  in  ten-year  pe- 
riods, ever  since  1876.  The  miners  lost  the  strike 
of  1876  and  obtained  a  satisfactoiy  adjustment  in 
1884.  Ten  years  later  an  adjustment  was  obtained 
with  at  least  one  company,  but  there  was  a  failure 
in  the  case  of  the  Colorado  Fuel  and  Iron  Company. 
The  1903  strike  was  abandoned  after  eleven 
months  and  after  a  failure  to  obtain  recognition  of 
practically  the  same  grievances  advanced  after  the 
191 2  organizing  campaign  of  the  United  Mine 
Workers  in  the  Colorado  field.  The  1913  strike 
was  called  by  the  Trinidad  convention  to  take  place 
in  the  event  the  operators  declined  to  accept  a  con- 
ference.    As  a  matter  of  fact,  it  was  perfectly  well 

288 


THE    COLORADO    COAL    STRIKE     289 

known  that  the  operators  would  not  accept  a  con- 
ference, so  the  date  for  the  strike  was  fixed  by  the 
Trinidad  convention. 

Specifically,  the  miners  made  the  following  de- 
mands : 

1.  Recognition  of  the  United  Mine  Workers' 
Union. 

2.  An  increase  of  wages. 

3.  Eight-hour  day. 

4.  Checkweighmen. 

5.  The  right  to  trade  at  other  than  company 
stores. 

6.  Enforcement  of  various  state  laws. 

7.  Abolition  of  the  guard  system. 

There  were  other  grievances,  among  which  were 
persecution  of  union  organizers  and  men,  discrim- 
ination against  union  men,  political  domination  by 
the  operators,  employment  of  foreigners,  failure  of 
accident  prevention  and  want  of  compensation  for 
accidents,  which  were  considered  only  in  the  after- 
math of  the  strike.  As  a  matter  of  fact, there  was  one 
principal  grievance  to  which  all  others  were  sec- 
ondary. This  grievance  was  the  failure  of  the 
miners  to  obtain  from  the  operators  consideration  of 
grievances  generally  through  committees  of  the 
United  Mine  Workers  of  America. 

Merely  because  the  Colorado  strike  may  be  re- 


290         INDUSTRIAL    ARBITRATION 

garded  as  typical  of  strikes  generally,  or  at  least  of 
those  strikes  where  industrial  warfare  is  accompa- 
nied by  violence,  it  is  discussed  somewhat  at  length. 
The  investigations  of  the  Industrial  Relations  Com- 
mission have  established  certain  facts  which  might 
otherwise  continue  to  be  subjects  of  controversy. 
The  testimony  before  the  commission  has  removed 
certain  important  phases  of  the  strike  beyond  the 
realm  of  controversy. 

Negotiations  for  a  settlement  of  the  differences 
between  mine  owners  and  mine  workers  never  got 
beyond  the  question  of  recognizing  the  mine  work- 
ers' organization  because  the  operators  refused  to 
meet  representatives  of  the  United  Mine  Workers, 
formally  or  informally,  although  repeatedly  re- 
quested to  do  so.  The  operators  were  obdurate  de- 
spite the  fact  that  officials  of  the  United  Mine 
Workers  agreed  at  one  stage  to  yield  recognition 
altogether  if  the  operators  would  only  meet  them 
informally  In  the  governor's  office.  Of  course,  rep- 
resentatives of  the  miners  hoped  ultimately  for  rec- 
ognition. 

Here,  then,  was  the  basic  difference  In  the  Colo- 
rado strike.  The  operators  knew  well  enough  that 
to  meet  representatives  of  the  United  Mine  Workers, 
under  whatever  agreement  or  understanding,  would 


THE    COLORx^DO    COAL    STRIKE     291 

be  tantamount  to  recognition.  If  the  coal  operators 
were  justified  at  all  In  refusing  recognition,  they 
undoubtedly  were  justified  in  refusing  to  take  any 
preliminary  steps  in  that  direction.  It  may  be  said 
without  any  reservation  of  the  Colorado  strike  that 
the  refusal  of  the  mine  owners  to  meet  the  repre- 
sentatives of  the  strikers  prevented  a  settlement, 
just  as  it  has  prevented  settlements  in  the  past  and 
as  it  will  prevent  settlements  in  the  future.  Strikes 
that  encounter  this  difficulty  must  go  on  until  one 
side  is  exhausted.  Had  the  country  been  face  to 
face  with  a  fuel  famine,  public  sentiment  might  have 
forced  the  operators  to  treat  with  any  group  of  men 
capable  of  ordering  a  resumption  of  work.  Again 
and  again,  public  sentiment  has  forced  transporta- 
tion companies  to  resume  operations  when  their 
only  means  of  resumption  was  to  accept  the  griev- 
ance committee  of  a  national  union.  This  com- 
pelling factor  was  lacking  in  the  Colorado  strike. 

During  the  period  of  the  strike  when  various 
agencies,  official  and  unofficial,  were  seeking  a  basis 
of  settlement,  the  operators  sought  to  emphasize  the 
lawless  character  of  the  United  Mine  Workers. 
Very  probably  this  organization  Is  no  worse  than 
the  men  who  make  up  the  great  body  of  coal  miners 
in  the  United  States.     If  the  organization  Is  law- 


292         INDUSTRIAL    ARBITRATION 

less,  it  is  because  the  coal  miners  as  a  class  of  people 
are  lawless.  Yet  with  how  much  justice  can  the  op- 
erators be  heard  to  complain  of  this  fact?  One  of 
the  grievances  of  the  1903  strike  was  that  the  oper- 
ators were  importing  foreigners  from  southern  Eu- 
rope and  displacing  the  English-speaking  miners. 
The  military  commission  assigned  to  report  on  the 
Ludlow  massacre  laid  the  remote  cause  of  the  battle 
to  the  "coal  operators,  who  established  in  an  Ameri- 
can industrial  community  a  numerous  class  of  igno- 
rant, lawless  and  savage  South-European  peasants." 
In  another  place,  it  said :  "The  tent  colony  is  al- 
most wholly  foreign  and  without  conception  of  our 
government.  A  large  percentage  are  unassimilable 
aliens,  to  whom  liberty  means  license.  .  .  ." 
Senator  Patterson  testified  before  the  commission 
that  It  had  been  the  deliberate  policy  of  the  com- 
pany to  fill  up  mines  with  foreigners  of  different 
nationalities;  to  get  men  employed  who  would  be 
quite  content  to  go  to  work  in  the  morning,  work 
during  the  length  of  time  the  law  permits,  go  to 
their  homes,  go  to  bed,  get  up  and  go  to  work  again, 
without  giving  any  serious  thought  to  the  advance- 
ment either  of  their  own  individual  comfort  or  the 
advancement  of  their  class. 

If  the  mine  owners  pursued  this  policy,  about 


THE    COLORADO    COAL    STRIKE     293 

which  there  can  be  no  question,  they  can  not  well 
complain  if  organization  turns  these  men  into  sav- 
ages and  brutes  who  resort  to  violence  to  resist  fur- 
ther aggressions.  The  mine  workers'  organization, 
the  rank  and  file,  consisted  principally  of  those  men 
the  companies  had  brought  into  the  mine  district. 
It  is  idle  to  say  they  were  misled  by  outside  agi- 
tators. Their  leaders  were  not  all  residents  of  the 
state,  but  neither  were  the  men  who  owned  the 
mines. 

It  is  difficult  to  fix  the  responsibility  for  the  be- 
ginnings of  violence  in  the  Colorado  strike.  Before 
the  militia  was  called  out  the  civil  authorities  of 
Huerfano  County  had  commissioned  several  hun- 
dred men  as  deputy  sheriffs,  some  of  whom  were 
employed  by  the  coal  companies  and  none  of  whom 
was  subjected  to  any  examination  as  to  character  or 
fitness  for  service.  The  sheriff,  who  was  acting  in 
conjunction  with  the  operators,  appointed  whomso- 
ever they  wished.  Most  of  the  deputies  were  paid 
by  the  coal  companies  and  were  subservient  to  their 
wishes.  The  sheriff  of  Huerfano  County  was  the 
political  tool  of  the  mine  owners  and,  the  proprietor 
of  at  least  two  saloons  in  the  strike  district,  can 
scarcely  be  said  to  have  been  a  fit  man  for  the  office 
in  which  he  served.     The  testimony  before  the  In- 


294         INDUSTRIAL    ARBITRATION 

dustrial  Relations  Commission  recited  many  in- 
stances of  lawlessness  on  the  part  of  these  "depu- 
ties." 

After  the  state  militia  was  called  out  things  rap- 
idly grew  worse.  Of  the  personnel  of  the  Colorado 
National  Guard,  especially  its  officers,  there  can  be 
no  question.  The  National  Guard  was  commanded 
by  a  man  wholly  unfit  for  any  responsible  service, 
■much  less  the  peculiarly  high  order  of  service  re- 
quired in  a  delicate  situation.  As  one  witness  testi- 
fied, "The  leaders  of  the  militia  considered  it  neces- 
sary to  have  an  enemy  and  they  chose  the  strikers," 
probably  because  they  were  prejudiced  against  or- 
ganized labor.  A  few  of  the  officers  of  the  militia 
were  brutes.  Men  and  women  were  arrested  in  the 
strike  zone  without  the  shadow  of  a  pretext,  searched 
and  detained  in  prison  at  the  will  of  the  military 
authority.  Officers  of  the  United  Mine  Workers 
and  strike  sympathizers  suffered  like  indignities. 
Private  homes,  the  homes  of  persons  who  had  no 
part  In  the  strike,  were  entered  and  searched  and 
robberies  by  militiamen  became  so  common  that 
several  culprits  were  court-martialed  and  found 
guilty.  Young  women  were  outraged.  After  the 
battle  of  Ludlow,  soldiers  and  mine  guards  looted 
the  tents  of  the  strikers  and  burned  and  destroyed 


THE    COLORADO    COAL    STRIKE     295 

what  they  were  not  able  to  carry  off — clothes,  bed- 
ding, jewelry,  bicycles,  tools  and  utensils. 

Can  there  be  any  wonder  that  organized  labor  is 
unfriendly  to  the  military  arm  of  the  government, 
especially  when  it  is  remembered  that  the  military 
is  used  not  for  police  duty,  as  it  ought  to  be,  but  as 
the  auxiliary  of  Capital  to  break  strikes  and  assist 
the  employer  to  resist  the  organization  of  his  em- 
ployees? With  a  free  labor  market  it  would  be  next 
to  impossible  to  win  an  ordinary  strike  without  either 
intimidation  or  violence,  both  of  which  are  illegal. 
In  the  Colorado  strike,  as  in  most  strikes,  the  first  law 
breaker  was  the  employer,  A  Colorado  statute 
makes  it  illegal  to  use  any  form  of  coercion  in  pre- 
venting workers  from  joining  a  permanent  organ- 
ization of  working  men,  yet  the  law  was  outraged 
by  the  mine  owners  in  a  system  of  espionage  main- 
tained by  their  regularly  employed  mine  guards 
whose  duty  it  was  to  spy  on  the  men  and  report  to 
the  officials.  It  is  difficult  to  see  wherein  the  em- 
ployer's claim  to  injury  lies  when  strikers  by  violat- 
ing other  laws  are  able  by  force  or  a  show  of  force 
to  prevent  work  at  his  property. 

Judge  Ben  B.  Lindsay  testified  before  the  Indus- 
trial Relations  Commission  that  in  four  years  In 
three  or  four  counties  of  Colorado  nearly  seven  hun- 


296        INDUSTRIAL    ARBITRATION 

dred  little  children  were  made  orphans,  or  father- 
less and  dependents,  because  of  explosions  in  coal 
mines,  the  greater  number  of  which  could  have  been 
avoided  had  ordinary  safety  appliances  been  em- 
ployed. The  presiding  judge  of  the  third  judicial 
district,  including  Las  Animas  County,  testified  un- 
der oath  that  not  a  single  personal  injury  case  had 
been  brought  before  him  during  the  entire  eleven 
years  he  sat  on  the  bench.  Most  lawyers,  it  was 
said,  have  been  afraid  to  take  personal  injury  cases 
because  of  the  fear  that  "the  company  will  blacklist 
them  and  be  against  them  politically  and  every 
other  way." 

There  can  be  no  serious  doubt  that  the  coal  com- 
panies have  been  derelict  in  precautions  to  prevent 
accidents.  The  percentage  of  persons  killed  in  the 
Colorado  mines  is  about  twice  that  for  the  United 
States  as  a  whole.  Operators  contend  that  the  haz- 
ard is  greater  in  Colorado  than  in  other  coal-mining 
regions  because  of  the  peculiar  formation  of  the  coal 
veins,  but  the  testimony  of  experts  does  not  support 
the  contention.  The  testimony,  however,  does  show 
that  the  larger  companies  have  suffered  fewer  acci- 
dents than  the  smaller  companies  and  that  they  have 
made  a  more  consistent  effort  to  comply  with  the 
accident  prevention  laws.    It  is  a  rare  instance  when 


THE    COLORADO    COAL    STRIKE     297 

the  operating  company  pays  anything  to  the  injured 
miner  or  his  family.  Through  control  of  judicial 
processes  and  various  means  of  intimidation,  the 
mine  owners  are  able  to  escape  payment  of  damages 
in  practically  every  case.  The  operators  themselves 
have  had  control  of  agencies  organized  for  promot- 
ing sentiment  in  behalf  of  industrial  compensation 
and  have  thus  blocked  all  progress  in  this  direction. 
Under  non-union  conditions  miners  have  refrained 
from  complaints  against  the  perils  of  the  industry 
because  to  complain  has  meant  summary  dismissal. 
Locally,  the  mine  owners  have  enjoyed  a  degree 
of  political  control  which  would  have  done  credit 
to  the  land  barons  of  medieval  ages.  At  the  head 
of  the  local  machine  in  Las  Animas  County,  for  in- 
stance, is  the  sheriff.  But  the  domination  of  the 
mine  owners  applies  more  or  less  to  the  state  as  a 
whole.  It  applies  quite  as  forcibly  and  effectively 
to  the  courts  and  to  the  state  legislature.  Worst  of 
all,  this  control  has  enmeshed  the  educational  sys- 
tem of  the  state  and  since  the  Industrial  Relations 
Commission  adjourned  its  hearings  on  the  Colorado 
strike,  Professor  J.  H.  Brewster,  who  gave  damaging 
testimony  against  the  operators,  has  been  dropped 
from  the  faculty  of  the  University  of  Colorado  in 
much  the  same  high-handed  manner  as  Professor 


298         INDUSTRIAL    ARBITRATION 

Scott  Nearing  was  dropped  from  the  faculty  of  the 
University  of  Pennsylvania. 

National  party  emblems  have  meant  nothing  in 
Las  Animas  and  Huerfano  Counties.  Political 
campaigns  raise  no  issues  between  the  Republican 
and  Democratic  parties  as  such.  This  difference  is 
secondary.  The  only  politics  of  the  mine  zone  is  the 
politics  that  preserves  or  defeats  the  control  of 
the  mine  owners.  A  newspaper  publisher  in  the 
mine  zone,  a  lawyer  and  former  judge  who,  it 
seems,  was  not  in  the  employ  of  the  coal  companies 
in  191 2,  bitterly  attacked  them  in  a  political  speech 
at  Lamar.  When  he  testified  before  the  Industrial 
Relations  Commission  two  years  later,  having  in  the 
meantime  been  employed  by  the  companies,  he 
stated  that  the  political  domination  of  which  he 
complained  in  1912  existed  "for  some  time  prior  to 
1 91 2,"  the  Inference  being  that  the  conditions  of 
which  he  formerly  complained  disappeared  about 
the  time  he  accepted  employment  from  the  compa- 
nies. 

As  Judge  Lindsay  said  of  the  Colorado  strike,  It 
Is  a  "symptom  of  national  wrong.  It  Is  the  symp- 
tom of  national  wrong  which  has  broken  out  In 
Colorado  at  one  time;  in  Michigan,  West  Virginia 
and  Pennsylvania  at  other  times;  will  continue  to 


THE    COLORADO    COAL    STRIKE     299 

break  out  until  you  go  deeply  into  fundamental  ques- 
tions concerning  rights  of  property  and  the  rights 
of  humanity." 

The  Chicago  street  railway  strike  of  191 5  was 
adjusted  quickly  because  the  strikers  were  well  or- 
ganized and  capable  of  acting  as  a  unit.  But  the 
Chicago  strike  was  settled  promptly  for  another  rea- 
son, A  city  ordinance  passed  after  the  strike  began 
forbade  the  company  to  employ  inexperienced  work- 
men. Strikebreakers  were  out  of  the  question.  One 
year  of  violence  in  the  Colorado  strike  zone  shows 
conclusively  the  consequences  of  lending  the  mili- 
tary arm  of  the  state  to  employers  for  the  purpose 
of  breaking  strikes.  The  state  owes  no  duty  to  em- 
ployers which  requires  protection  for  their  armed 
thugs.  Rather  it  is  the  duty  of  the  state  to  keep  a 
strike  zone  clear  of  men  who  are  imported  as  strike- 
breakers merely,  men  who  are  in  no  sense  bona  fide 
workmen. 


CHAPTER  XIII 


TRADE  AGREEMENTS 


IN  his  testimony  before  the  United  States  Indus- 
trial Commission  in  1901/  Samuel  Gompers, 
president  of  the  American  Federation  of  Labor, 
made  this  statement : 

"As  one  who  has  been  Intimately  and  closely  con- 
nected with  the  labor  movement  for  more  than  thirty 
years — from  boyhood — I  say  to  you  that  I  have  yet 
to  receive  a  copy  of  the  constitution  of  any  general 
organization  or  local  organization  of  labor  which 
has  not  the  provision  that  before  any  strike  shall  be 
undertaken,  conciliation  or  arbitration  shall  be  tried  ; 
and  with  nearly  twelve  thousand  local  trade  unions 
in  the  United  States,  I  think  this  goes  far  to  show 
that  the  organizations  of  labor  are  desirous  of  en- 
couraging amicable  arrangements  of  such  schedules 
and  conditions  of  labor  as  shall  tend  to  peace." 

The  American  Federation  of  Labor  has  made 
phenomenal  growth  since  190 1  and  instead  of  twelve 
thousand  local  unions  now  consists  of  twenty-seven 
thbusand.    Also,  there  are  one  hundred  thirteen  na- 


^  Report  of  the  Commission,  Vol.  17,  p.  695-6, 
300 


TRADE    AGREEMENTS  301 

tlonal  and  international  unions  which  are  affiliated 
in  this  federation.  The  statement  made  by  Presi- 
dent Gompers  in  1901  very  probably  is  just  as  true 
of  the  twenty-seven  thousand  local  trade  unions  now 
as  it  was  of  the  twelve  thousand  in  that  year. 

The  typographical  union  is  the  oldest  American 
national  trade  union. ^  It  was  one  of  the  first  labor 
organizations  to  undertake  collective  bargaining.  As 
early  as  the  decade  from  1830  to  1840  several  asso- 
ciations of  journeymen  printers  were  formed  with 
the  design  of  maintaining  scales  of  prices. 

In  1 90 1,  the  first  arbitration  agreement  was  signed 
between  the  International  Typographical  Union  and 
the  Newspaper  Publishers'  Association.  This  agree- 
ment was  renewed  in  1902,  again  in  1907,  and  still 
again  in  1912.  Since  the  first  agreement  was  drawn 
up,  several  amendments  have  been  made  to  the  orig- 
inal draft. 

The  present  agreement,  effective  May  i,  1912, 
and  expiring  April  30,  191 7,  includes  an  individual 
arbitration  contract  and  a  code  of  procedure  which 
express  and  imply  certain  guaranties  to  each  party. 
Members  of  the  American  Newspaper  Publishers' 
Association  holding  individual  arbitration  contracts 


*  Hollander  &  Barnett,  Studies  in  American  Trade  Union- 
ism, p.  15. 


302         INDUSTRIAL    ARBITRATION 

are  protected  against  walkouts,  strikes  or  boycotts  by 
members  of  the  union  and  against  any  other  forms  of 
concerted  interference.  In  the  event  of  a  difference 
between  a  publisher  and  a  local  union,  all  work  must 
continue  without  interruption  pending  proceedings 
looking  to  conciliation  or  arbitration,  either  local  or 
international,  and  wages,  hours  and  working  condi- 
tions prevailing  at  the  time  the  difference  arises 
shall  be  preserved  unchanged  until  a  final  decision 
of  the  matter  in  dispute.  Differences  that  can  not  be 
settled  by  conciliation  shall  be  settled  by  arbitra- 
tion. 

Differences  that  arise  under  a  written  contract 
that  can  not  be  settled  by  conciliation  shall  be  re- 
ferred to  local  arbitration,  If  so  provided  In  the  con- 
tract, and  If  not  so  provided,  to  the  chairman  of  the 
Special  Standing  Committee  of  the  American  News- 
paper Publishers'  Association  and  the  president  of 
the  International  Typographical  Union.  If  they  are 
unable  to  agree,  the  dispute  must  be  submitted  to  the 
International  board  of  arbitration,  which  consists  of 
three  members  of  the  executive  council  of  the  Inter- 
national Typographical  Union  and  three  members 
of  the  Special  Standing  Committee  of  the  American 
Newspaper  Publishers'  Association.    These  six  men 


TRADE    AGREEMENTS  303 

may  call  In  a  seventh  and  disinterested  member  of 
the  board.  An  award  of  a  majority  of  this  board  is 
final. 

Differences  involving  a  new  scale  of  wages,  hours 
of  labor,  renewing  or  extending  a  scale,  or  in  re- 
spect to  a  contract,  not  settled  by  conciliation,  may 
be  referred  to  a  local  board  of  arbitration,  consist- 
ing of  two  members  to  be  named  by  each  side,  one 
of  whom  named  by  each  party  shall  be  free  from 
personal  connection  with  any  newspaper  or  labor 
union.  The  chairman,  the  fifth  member  of  the  board 
who  is  chosen  by  the  other  four,  must  likewise  be  a 
disinterested  person.  Provision  is  made  in  the  inter- 
national agreement  for  appeal  from  a  local  board  to 
the  international  board. 

Aside  from  the  agreement  between  the  Interna- 
tional Typographical  Union  and  the  American 
Newspaper  Publishers'  Association,  local  branches 
of  the  former  have  in  force  many  contracts  in  the 
book  and  job  printing  business,  all  of  which  provide 
for  arbitration  of  disputes.  Moreover,  an  agree- 
ment is  now  being  negotiated  between  the  Interna- 
tional Typographical  Union  and  the  United  Typoth- 
etae  of  America,  an  employers'  organization  in  the 
book  and  job  branch  of  the  printing  business,  which. 


304         INDUSTRIAL    ARBITRATION 

if  successful,  will  extend  the  scope  of  arbitration  in 
the  printing  business  by  another  notable  Interna- 
tional agreement. 

Some  of  the  early  trade  agreements  In  this  coun- 
try already  have  been  referred  to  in  this  volume, 
namely,  that  of  the  Sons  of  Vulcan,  in  the  iron  in- 
dustry and  that  of  the  Knights  of  St.  Crispin  in  the 
boot  and  shoe  industry.  But  the  first  trade  board 
organized  with  powers  similar  to  the  powers  of  the 
present  trade  board  was  organized  in  a  New  York 
City  cigar  factory. 

The  next  trade  agreement  of  importance  was  that 
of  the  Builders'  Association  of  New  York  City  and 
the  Bricklayers'  Union  and  Amalgamated  German 
Unions.  A  board  of  delegates  in  all  the  building 
trades,  except  the  bricklayers',  was  provided.  There 
was  a  division  in  1894  and  an  amalgamation  of  the 
two  factions  in  1902  Into  the  United  Board  of  Build- 
ing Trades.  Through  the  Intercession  of  the  Na- 
tional Civic  Federation  in  1903  a  general  arbitration 
board,  composed  of  representatives  from  the  United 
Board  of  Building  Trades  and  the  Building  Trades 
Employers'  Association,  was  organized.  It  con- 
sisted of  two  representatives  from  each  affiliated  em- 
ployers' association  and  two  representatives  from 
each  union.     There  was  an   executive  committee, 


TRADE    AGREEMENTS  305 

composed  of  six  employers  and  six  employees  elected 
from  the  general  arbitration  board,  to  which  dis- 
putes were  first  referred  by  the  secretary  of  the  ar- 
bitration board,  after  he  had  failed  in  conciliation. 
Decisions  of  the  executive  committee  were  final  un- 
less disapproved  by  the  general  arbitration  board. 
Special  arbitration  boards  of  four  members  might 
be  organized  and  these  special  boards  might  appoint 
an  umpire. 

Between  1903  and  1909,  a  total  of  2,653  griev- 
ances were  submitted  to  the  secretary  of  the  general 
arbitration  board,  2,379  by  labor  unions,  274  by 
employers'  associations.  The  general  secretary  ad- 
justed 1,050  of  these  disputes  by  conciliatory  meth- 
ods; 1,184  went  to  arbitration,  and  of  these  226 
were  abandoned  and  50  referred  to  the  trade  boards 
for  adjudication.^  The  remainder  were  disposed  of 
in  other  ways. 

This  plan  of  arbitration  expired  in  1910,  since 
which  time  individual  trade  boards  have  arbitrated 
all  disputed  matters.  Under  the  present  method 
of  handling  disputes,  or  since  1 9 10,  the  aggrieved 
union  presents  its  complaint  to  the  proper  authority 
as  originally  provided  under  the  arbitration  plan, 


'Report  of  the  New  York  Bureau  of  Mediation  and  Arbi- 
tration, 1908,  pp.  290-297. 


3o6         INDUSTRIAL    ARBITRATION 

except  that  there  is  now  no  higher  court  of  appeal. 
Disputed  matters  are  formally  presented  and  a 
decision  rendered  or  settlement  reached  in  accord- 
ance with  standards  established  or  In  strict  compli- 
ance with  the  jurisdictional  code  formulated  by  the 
now  extinct  arbitration  board.  It  is  to  be  under- 
stood, however,  that  the  arrangement  of  individual 
employers'  associations  and  the  unions  of  each  craft 
signing  conciliation  and  arbitration  agreements  still 
continues.* 

The  first  trade  agreement  in  the  iron  moulders' 
industry  was  signed  in  1874  at  Cincinnati,  fifteen 
years  after  the  International  Iron  Moulders'  Union 
was  organized.  The  National  Stove  Manufacturers' 
Association  was  formed  in  1872  and  out  of  this  grew 
the  Stove  Founders'  National  Defense  Association 
in  1885,  launched  expressly  to  fight  the  moulders' 
union.  A  plan  for  conciliation  between  the  two  or- 
ganizations was  agreed  upon  at  a  joint  conference 
held  at  Chicago  in  1891  following  a  disastrous  strike 
at  St.  Louis  a  few  years  previously.  This  plan  pro- 
vided for  a  conciliation  board  of  three  representa- 
tives from  the  employers  and  three  from  the  em- 
ployees.    Seven  years  later  the  National  Founders' 


*  Bureau  of  Labor  Statistics,  Conciliation  and  Arbitration  in 
the  .Building^  Trades  of  Greater  New  York,  1913,  p.  9. 


TRADE    AGREEMENTS  307 

Association  entered  into  a  plan  for  conciliation  with 
the  International  Moulders'  Union  under  a  pact 
known  as  the  "New  York  agreement." 

During  the  spring  of  1904,  the  executive  com- 
mittee of  the  National  Founders'  Association  agreed, 
at  a  meeting  held  in  Cincinnati,  not  to  recognize  the 
New  York  agreement  after  that  date.  A  little  later, 
the  association  formally  abrogated  the  agreement 
despite  the  protest  of  the  International  Moulders' 
Union,  which  insisted  that  since  the  agreement  was 
duly  entered  into  by  the  two  organizations,  it  could 
be  abrogated  only  by  joint  action.  The  National 
Founders'  Association,  however,  adhered  to  the  ab- 
rogation of  1904  and  the  New  York  agreement  has 
not  since  been  effective. 

In  July,  19 10,  a  strike  of  the  New  York  cloak 
makers  began.  The  strikers  demanded  a  new  trade 
agreement  with  complete  recognition  of  the  cloak 
and  shirt-makers'  and  International  Garment- 
Makers'  Unions.  The  strikers  numbered  about  sev- 
enty-five thousand.  Under  the  agreement,  effected 
at  the  close  of  the  strike  in  September,  recognition 
of  the  union  and  preference  for  its  members  were 
provided,  though  the  "closed"  shop  is  not  main- 
tained. The  agreement  provided  for  an  arbitration 
board  of  three  members,  board  of  sanitary  control 


3o8         INDUSTRIAL    ARBITRATION 

of  seven  members  and  grievance  committee  of  four 
members.  The  fifty-four-hour  week,  nine-hour 
day,  double  pay  for  overtime  and  a  minimum 
wage  scale  for  time  workers  were  obtained.  The 
cloak  and  suit  industry  includes  two  thousand 
establishments  and  represents  a  capital  invested  of 
forty  million  dollars  with  a  two  hundred  fifty  mil- 
lion dollar  output  annually. 

The  bituminous  coal  miners  have  worked  under  a 
joint  conference  agreement  with  the  mine  operators 
since  1898.  There  is  an  agreement  covering  prac- 
tically all  the  mines  in  Illinois,  Indiana,  Ohio  and 
western  Pennsylvania  and  local  agreements  are  in 
effect  in  other  states.  These  agreements  have  not 
always  proved  adequate  to  prevent  strikes  but  there 
is  no  doubt  they  have  done  very  much  in  that  di- 
rection. 

Since  the  great  coal  strike  of  1902,  the  anthracite 
coal  operators  have  dealt  with  their  employees  un- 
der the  terms  of  an  agreement  drafted  at  that  time 
and  since  renewed.  The  National  Lithographic  As- 
sociation, the  theatrical  managers,  the  brewers,  the 
hatters  and  the  cigar  makers  have  trade  agreements 
with  their  employees.  During  the  first  years  of  the 
last  decade,  the  United  States  Steel  Corporation  and 


TRADE    AGREEMENTS  309 

the  Republic  Iron  and  Steel  Company  also  operated 
under  trade  agreements  with  their  employees. 

There  are  five  national  unions  .not  affiliated  with 
the  American  Federation  of  Labor  which  require 
efforts  at  conciliation  before  a  strike  may  be  called. 
Four  of  these  are  railroad  organizations — the  Broth- 
erhood of  Locomotive  Firemen  and  Enginemen,  the 
Brotherhood  of  Locomotive  Engineers,  the  Brother- 
hood of  Railway  Trainmen  and  the  Order  of  Rail- 
way Conductors.  There  Is  a  scheme  known  as  "sys- 
tem federation"  by  which  these  organizations  act  in 
concert  when  controversies  arise  between  the  car- 
riers and  the  employees.  The  provisions  of  one  of 
these,  the  Brotherhood  of  Locomotive  Firemen  and 
Enginemen,  is  typical  of  the  procedure  necessary 
before  a  strike  may  be  called. 

District  protective  boards  consisting  of  the  mem- 
bers of  the  executive  committee  of  each  joint  pro- 
tective board  concerned  in  an  Industrial  controversy 
may  not  poll  their  members  for  a  strike  vote  until 
authorized  to  do  so  by  the  district  board  with  the 
approval  of  the  International  president.  District 
boards,  when  convened  with  the  assistance  of  the 
international  president,  must  arrange  for  a  confer- 
ence between  the  general  managers  of  railways  in- 


3IO         INDUSTRIAL    ARBITRATION 

terested  and  have  authority  to  make  and  enter  into  a 
settlement.  Failing  to  reach  a  settlement,  the  dis- 
trict boards,  with  the  approval  of  the  president,  have 
authority  to  sanction  a  strike  upon  all  lines  inter- 
ested, if  two-thirds  of  the  members  in  referendum 
vote  have  declared  for  a  strike. 

The  Bricklayers,  Masons  and  Plasterers'  Interna- 
tional Union  of  America  is  the  fifth  organization  not 
affiliated  with  the  American  Federation  of  Labor. 
The  constitution  of  this  organization  recognizes  five 
causes  as  essential  to  a  strike :  to  maintain  the  stand- 
ard hours  of  labor,  to  decrease  the  hours  of  labor,  to 
increase  the  rate  of  wages,  to  resist  a  threatened  re- 
duction of  wages  and  to  resist  the  introduction  of 
non-union  conditions. 

Where  two  or  more  unions  in  the  same  trade  ex- 
ist, a  joint  meeting  must  be  held  and  a  resolution 
adopted  by  a  two-thirds  vote,  ordering  the  transmis- 
sion to  the  executive  board  of  a  bill  of  complaint.  A 
subordinate  union  must  transmit  to  the  executive 
board  a  "clear,  concise  and  comprehensive  statement 
in  writing  of  all  the  facts  and  circumstances  con- 
nected with  the  pending  trouble  or  cause  of  dissat- 
isfaction. This  bill  of  complaint  shall,  in  addition, 
set  forth  the  efforts  made  to  arbitrate  the  differences, 
I  if  any  such  were  attempted," 


TRADE    AGREEMENTS  311 

Upon  receipt  of  a  bill  of  complaint,  the  executive 
board,  consisting  of  the  president,  first  vice-presi- 
dent and  secretary  of  the  union,  must  send  a  special 
deputy  to  the  scene  to  investigate  fully  the  alleged 
matters  of  complaint.  Upon  the  receipt  of  a  report 
from  the  special  deputy,  the  executive  board  may 
authorize  him  to  call  a  strike.  Or,  the  executive 
board  may  disapprove  the  special  deputy's  recom- 
mendations, and  if  so,  it  must  go  to  the  scene  of 
trouble  and  personally  investigate  the  complaint,  and 
either  sanction  or  refuse  a  strike.  The  decision  of 
the  executive  board  is  final. 

"We  must  search  for  a  method  of  settling  indus- 
trial disputes  upon  a  basis  which  will  substitute  pri- 
mary agreements  for  conflict  and  thus  anticipate  and 
render  unnecessary  the  operation  of  palliative  meth- 
ods," said  a  representative  of  the  National  Associa- 
tion of  Builders  before  the  industrial  commission  in 
1901.^  "Arbitration  means  the  settlement  of  some- 
thing in  controversy.  This  is  not  what  we  are  seek- 
ing .  .  .  Mutual  agreement  before  the  parties 
have  come  to  the  point  of  conciliation  is  the  solu- 
tion of  the  problem." 

A  joint  agreement  between  the  coal  operators 
and  the  miners  In  the  Indiana  district  was  referred 
to  in  the  labor  commission's  report  for  1907-08  as 


'  Wm.  H.   Sayward,  secretary,  Industrial  Commission  Re- 
port, Vol.  17,  p.  691. 


312         INDUSTRIAL    ARBITRATION 

"perhaps  the  most  perfect  basis  upon  which  the  em- 
ployer and  employee  meet  to-day,"  and  the  Massa- 
chusetts board  in  speaking  of  the  Boot  and  Shoe 
Workers'  Union,  the  largest  trade  organization  in 
Massachusetts,  in  1905,  remarked:  "During  the 
period  of  seven  years  since  the  general  organization 
inaugurated  the  arbitration  contract,  factories  where 
such  agreements  were  made  have  not  been  seriously 
disturbed  by  cessation  of  work  due  to  any  dispute." 
Perhaps  the  greatest  difficulty  which  lies  in  the 
way  of  a  speedy  and  satisfactory  settlement  of  in- 
dustrial controversies  in  this  country  is  the  unwill- 
ingness of  employers  and  employers'  organizations 
to  recognize  trade  unions  and  deal  with  their  em- 
ployees through  the  representatives  of  trade  unions. 
Questions  of  wages  and  working  conditions  are  un- 
important matters  as  compared  to  this,  notwithstand- 
ing reports  of  the  Bureau  of  Labor  show  more  strikes 
involved  the  question  of  wages  than  any  other  one 
subject.  The  history  of  strikes  and  lockouts  in  the 
United  States  is  replete  with  instances  of  the  em- 
ployer's willingness  to  concede  every  contention  of 
his  employees  but  that  of  hearing  them  through  their 
regularly  chosen  representatives  in  a  trade  union. 
When  employees  have  asked  for  arbitration  and  this 
matter  was  in  contention,  the  almost  uniform  reply 


TRADE    AGREEMENTS  313 

of  the  employer  has  been,  "We  have  nothing  to  ar- 
bitrate." 

"The  working  men  have  long  since  learned,"* 
said  the  New  York  Board  of  Mediation  and  Arbi- 
tration, "that  when  employers  refuse  to  deal  with 
them  save  as  individuals  there  is  really  only  one  side 
to  the  case.  The  best  solution  of  the  problem  lies  in 
the  medium  of  industrial  agreements  by  which  all 
disputes  shall  be  referred  to  boards  of  conciliation 
and  arbitration,  made  up  in  part  of  employers  and 
in  part  of  employees." 

The  Ohio  Board  of  Arbitration,  upon  the  same 
occasion,"  declared  that  early  in  a  street  railway 
strike  in  that  state  "but  a  single  thing  prevented  the 
settlement  of  the  dispute  by  arbitration,  namely,  the 
recognition  of  the  union.  Neither  side  could  be  in- 
duced to  yield  on  this  question,  although  both  were 
willing  to  yield  every  other." 

In  its  report  for  1906,  the  Ohio  board  remarked 
that,  "We  have  frequently  come  in  contact  with  em- 
ployers who  refuse  to  recognize  or  deal  with  com- 
mittees or  other  representatives  of  their  employees, 
because  of  their  membership  in  a  labor  organiza- 
tion. 

"We  have  failed  to  see  any  good  results  from  such 
a  course,  but  on  the  contrary,  have  observed  harmful 
consequences  in  a  number  of  cases." 

'  Report  of  the  Industrial  Commission,  p.  693. 
'  Ibid.,  p.  701. 


314         INDUSTRIAL    ARBITRATION 

"A  difference  affecting  wages  or  hours,"  said  the 
Illinois  state  board  in  1906,  "may  result  without 
difficulty  in  compromise,  oftentimes  by  each  side 
granting  some  contention,  but  the  matter  of  the  pol- 
icy of  the  open  shop,  as  contended  for  by  the  em- 
ployer, or  closed  shop,  as  oftentimes  demanded  by 
the  employees,  is  a  matter  of  fixed  principle  and  pre- 
cludes at  the  veiy  outset  any  grounds  of  compromise. 
It  is  the  policy  of  the  open  or  closed  shop  that  has 
attended  nearly  all  the  differences  in  the  labor  prob- 
lem which  have  confronted  the  board  of  arbitration 
in  Illinois  for  the  past  eighteen  months. 

"The  services  of  the  board  are  tendered  no  matter 
what  the  cause  may  be.  When  the  open  or  closed 
shop  is  an  issue,  the  services  are  usually  promptly 
declined  by  both  parties." 

In  practically  every  report  since  1905,  the  Massa- 
chusetts State  Board  of  Conciliation  and  Arbitration 
has  commended  the  trade  agreement  as  an  effective 
means  of  avoiding  disturbances  in  the  industrial 
world.  As  early  as  1905,  there  were  one  hundred 
seventy  trade  agreements  in  force  in  the  boot  and 
shoe  industry  of  Massachusetts  and  no  dispute  caus- 
ing stoppage  of  work  had  occurred  during  the  seven 
preceding  years  or  since  the  general  arbitration  con- 
tract had  been  inaugurated. 

"Energies  once  enlisted  for  strategy  and  collision 
sought  to  establish  harmonious  relations  by  means  of 
private  adjustments,  and  when  these  failed,  the  trade 
agreement  and  public  opinion  secured  the  submission 


TRADE    AGREEMEiNTS  315 

of  controversies  to  the  judgment  of  disinterested 
minds,"  the  board  said  in  1908.^ 

The  Lawrence  strike  is  the  only  instance  of  late 
years  in  Massachusetts  of  rioting  and  bloodshed.  The 
board  was  unsuccessful  in  averting  or  ending  the 
clash  largely  because  the  non-resident  mill  owners 
refused  to  take  the  initiative  and  resident  managers 
denied  responsibility.  Each  side  laid  down  in- 
flexible terms  of  settlement  and  it  was  not  until  a 
congressional  investigation  had  exposed  the  horrors 
of  life  among  the  textile  workers  that  anything  could 
be  accomplished.  And,  as  the  board  says,^  the  time 
required  to  appease  anger,  hatred  and  ill  will,  was 
shattered  by  a  rapid  succession  of  startling  events, 
freighted  by  worse  alarms. 

Neither  the  employer  nor  the  employee  has  been 
much  impressed  by  the  more  or  less  organized  ef- 
fort made  to  discredit  the  trade  agreement  in  Massa- 
chusetts. It  remains  to-day  as  the  most  practicable 
method  of  measuring  justice  to  the  respective  par- 
ties in  industry.  Capital  and  Labor;  not  exact  jus- 
tice, surely,  but  a  measure  of  justice  that  fairly  well 
fulfills  the  ideals  of  an  age  when  exact  justice,  if  not 
unattainable,  nevertheless  Is  unattalned. 


'Annual  Report  1908.  p.  1. 
'Annual  Report  1911,  pp.  9-10, 


3i6         INDUSTRIAL    ARBITRATION 

Of  the  total  number  of  strikes  In  the  United  States 
from  1 88 1  to  1905,  sixty-nine  per  cent,  were  or- 
dered by  labor  organizations  and  thirty-one  per 
cent,  were  not  so  ordered.  The  Indiana  Labor  Com- 
mission in  its  first  biennial  report  in  speaking  of 
the  "strongly  organized  trades"  remarked  that 
"one-third  of  the  differences  which  arise  in  the  cit- 
ies of  industry  where  perfect  organization  exists  are 
conciliated  in  a  manner  that  avoids  strikes  and  with- 
out incurring  public  notice  or  expense."  But  the 
same  commission  six  years  later  observed  that  "it 
is  not  apparent  that  fewer  controversies  arise  with 
organized  workmen  than  with  unorganized,  but 
where  organization  exists,  less  difficulty  is  experi- 
enced in  adjusting  the  difference  without  rupture 
than  with  unorganized  workmen,  for  the  reason  that 
the  former  are  usually  governed  by  strict  anti-strike 
rules,  which  are  part  of  the  laws  of  the  organization, 
and  which  require  that  effort  at  settlement  be  made 
without  a  strike.  It  is  also  true,  as  a  rule,  that  where 
employers  and  workmen  are  both  organized,  the 
difficulty  in  the  way  of  adjustments  without  a  strike 
is  still  further  minimized." 

Of  the  strikes  ordered  by  labor  organizations  be- 
tween 1 88 1  and  1905,  fifty  per  cent,  were  successful, 
sixteen  per  cent,  were  partly  successful,  and  thirty- 


TRADE    AGREEMENTS  317 

four  per  cent,  failed.  Of  those  not  so  ordered, 
thirty-four  per  cent,  succeeded,  ten  per  cent,  suc- 
ceeded partly  and  fifty-six  per  cent,  failed  alto- 
g^ether. 

Statistics  gathered  for  twenty-five  years  show 
that  thirty-two  per  cent,  of  the  strikes  were  caused 
by  demand  for  increased  wages  and  nineteen  per 
cent,  caused  by  a  demand  for  recognition  of  a  un- 
ion or  by  union  rules.  Eleven  per  cent,  of  the  strikes 
were  against  reduction  in  wages.  Frequently,  how- 
ever, demands  have  been  made  for  additional  wages 
because  wages  represent  a  tangible  grievance, 
whereas  wages  was  only  a  minor  consideration.^" 

The  table  on  page  319  shows  the  methods  by 
which  industrial  disputes  in  Great  Britain  from 
1903  to  1 91 2  were  settled.  While  the  number  of 
disputes  settled  by  arbitration  has  increased  as  well 
as  the  number  settled  by  conciliation  or  mediation, 
direct  negotiations  between  the  employer  and  em- 
ployee have  proved  far  the  most  popular  method 
of  adjudicating  any  controversy.  Between  1903  and 
1 91 2,  sixty-eight  per  cent,  of  all  disputes  where 
a  settlement  was  effected  were  settled  by  direct  ar- 
rangement or  negotiation  between  the  parties  or 


"  Statistics  of  strikes  and  lockouts  in  this  chapter,  except 
where  otherwise  noted,  are  taken  from  the  21st  Annual  Report 
of  the  Commissioner  of  Labor  in  House  Documents,  Vol.  110. 


3i8         INDUSTRIAL    ARBITRATION 

their  representatives.  Only  three  and  six-tenths  per 
cent,  were  settled  by  arbitration  and  only  six  and 
six-tenths  per  cent,  by  conciliation  or  mediation. 
In  nine  and  eight-tenths  per  cent,  of  the  disputes 
the  employees  returned  to  work  on  the  employers' 
terms  without  negotiations  and  in  ten  and  five-tenths 
per  cent,  of  the  disputes  the  workers  were  displaced. 
The  table  also  shows  the  number  of  work  people 
involved  in  the  cases  settled  by  different  methods. 

An  exhaustive  study  of  industrial  agreements  was 
made  by  the  Industrial  Council  of  Great  Britain 
and  a  report  made  in  191 3.  The  council  expressed 
its  approval  of  collective  bargaining  based  upon 
mutual  consent.  It  opposed  legislation  of  a  com- 
pulsory nature  affecting  either  party  to  an  indus- 
trial agreement.  Monetary  penalties  to  be  assessed 
against  individuals  or  associations  violating  indus- 
trial agreements  were  found  undesirable.  Moral 
influence,  the  council  believed,  will  generally  be 
adequate  for  the  strict  carrying  out  of  agreements. 
It  contended,  however,  that  associations  should  ex- 
ercise full  disciplinary  powers  which  it  thought  pub- 
lic opinion  would  assist.  Agreements  entered  into 
between  associations  of  employers  and  of  workmen 
representing  a  substantial  body  of  those  In  the  trade 
or  district  should,  on  the  application  of  the  parties 


TRADE    AGREEMENTS 


319 


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320         INDUSTRIAL    ARBITRATION 

to  the  agreement,  be  made  applicable  to  the  whole 
of  the  trade  or  district  concerned,  the  council  like- 
wise found.  A  specimen  draft  scheme  for  an  in- 
dustrial agreement  is  included  in  the  report.  The 
council  contended  that  an  industrial  agreement 
should  provide  that  notice  of  a  certain  number  of 
days  should  be  given  by  either  party  of  an  intended 
change  affecting  conditions  as  to  wages  or  hours, 
and  that  there  should  be  no  stoppage  of  work  or 
alteration  of  the  conditions  of  employment  until  an 
investigation  by  some  agreed  tribunal  had  been 
made  and  a  pronouncement  issued. 


CHAPTER  XIV 

CONCLUDING  OBSERVATIONS 

NO  student  of  industrial  problems  can  have 
surveyed  the  vast  field  of  agencies  with 
which  civilized  nations  have  experimented  in  their 
quest  of  industrial  peace  without  reaching  the  con- 
clusion that  the  effort  to  attain  industrial  peace  has 
failed  somewhat  because  it  has  not  recognized  the 
necessity  of  founding  that  effort  on  a  greater  meas- 
ure of  industrial  justice. 

For  a  quarter  of  a  century  we  have  been  trying 
to  build  an  ideal  superstructure  of  industrial  har- 
mony on  the  backs  of  men  and  women  who  toiled 
long  hours  in  unventilated  and  unsanitary  factories. 
We  have  sought  harmony  between  Labor  and  Cap- 
ital in  an  era  when  Labor  had  very  little  to  lose  and 
everything  to  gain  by  extreme  measures. 

We  have  set  up  this  scheme  and  that  scheme  of 
industrial  conciliation  and  arbitration  in  the  United 
States  and  Europe,  but  we  find  all  schemes  more 
or  less  futile.     We  resort  to  an  artificial  process 

321, 


322         INDUSTRIAL    ARBITRATION 

of  respiration  but  we  do  not  expect  the  patient  to 
live  forever  on  a  few  forced  draughts  of  oxygen. 
We  resort  to  an  artificial  process  in  industry  and 
we  have,  what  we  might  expect,  an  uncertain  and 
variable  result.  If  we  ever  succeed  in  making  con- 
ciliation and  arbitration  a  successful  device  we  are 
not  going  to  need  the  device  because  it  can  never 
be  successful  as  long  as  men  cry  out  against  in- 
human conditions  in  industry,  and  it  will  not  be 
much  needed  when  they  cease  to  cry  out. 

Generally,  we  have  preached  the  doctrine  of 
"peace  at  any  price" ;  a  doctrine  which,  interpreted, 
means  that  things  shall  remain  as  they  are.  It  is  the 
doctrine,  the  fundamental  idea,  of  ultraconserva- 
tives  in  every  country;  the  hope  of  the  standpatters; 
the  machine  gun  which  sweeps  the  hillside  guarding 
the  mine  and  factory  of  intrenched  monopolists 
wherever  they  may  be  found. 

It  is  too  much  to  expect  longer  that  Labor  shall 
appear  at  the  shrine  of  Capital  as  a  supplicant  for 
favors — shorter  hours,  pure  air  and  a  comfortable 
wage.  Yet,  until  Labor  has  fully  realized  its  latent 
strength,  just  that  sort  of  relationship  must  obtain. 
It  is  illogical.  It  is  unjust.  It  is  almost  wholly 
wrong.  Yet  with  Labor  organized,  largely,  rests 
"the  responsibility  of  a  change.     Organized  Capital 


CONCLUDING    OBSERVATIONS      323] 

will  contribute  little  to  a  readjustment  because  Or- 
ganized Capital  means  organized  selfishness  and  the 
watchword  of  selfishness  is  to  hold  on  to  what  it 
already  has.  Organized  Labor  also  means  organ- 
ized selfishness,  but  it  so  happens  that  the  selfishness 
of  Organized  Labor  has  enjoyed  little  opportunity 
for  self-gratification. 

Industrial  barons  in  this  country  still  maintain 
a  stoic  attitude  of  indifference,  if  not  contempt,  for 
the  missionaries  of  industrial  peace;  even  when  civil 
war  wages  fiercely  around  their  Colorado  coal 
mines,  and  scores  are  killed.  It  is  these  industrial 
barons,  unconsciously  no  doubt,  who  are  contribut- 
ing most  to  the  overthrow  of  the  system  they  would 
defend. 

During  the  last  four  centuries.  Labor  has  been 
the  aggressor  in  the  world-wide  movement  for  in- 
dustrial independence,  not  only  to  hold  what  it  had 
but  to  gain  what  its  adversary  was  unwilling  to 
yield  and  able  to  resist,  unless  driven  oftentimes  by 
force.  Progress,  however,  has  been  in  one  direction 
only,  however  slow;  little  by  little  has  the  working 
man  approached  the  goal  of  economic  independence. 
Child  labor  laws,  limitation  of  night  work,  shorter 
hours,  sanitary  and  health  legislation,  monetary 
compensation    for    industrial    accidents,    minimum 


324         INDUSTRIAL'    ARBITRATION 

wage  laws  in  the  sweated  industries  and  collective 
bargaining,  roughly  speaking,  have  marked  the 
stages  of  progress. 

At  every  stage.  Capital  has  appeared  on  the  scene 
to  contest  possession  of  ground  it  already  occupied 
and  to  bewail  the  assault  of  demagogues  on  the 
sacred  rights  of  property.  Now  and  then  a  man 
like  Robert  Owen,  William  C.  Redfield  or  Henry 
Ford  has  arisen  from  the  ranks  of  the  employers 
to  bestow  upon  his  employees  concessions  they  nei- 
ther asked  nor  expected.  The  exceptions,  indeed, 
are  rare.  Almost  invariably,  either  force  or  a  dem- 
onstration of  force  has  been  required  by  Labor  to 
win  primary  justice. 

In  this  country,  we  have  tended  unconsciously  to 
a  theory  of  society  that  has  its  roots  in  the  Norman 
invasion  of  England.  The  invaders,  having  seized 
the  wealth  of  the  country,  consisting  principally  of 
land,  considered  it  fitting  that  the  people  dispos- 
sessed of  their  property  should  be  nourished  by  the 
state  and  the  alms  received  should  be  accepted  in 
full  payment  of  the  debt  due  and  the  wrong  done 
them.  The  Elizabethan  poor  tax  was  an  example 
of  state  indemnity  for  land,  wealth  and  positions 
seized  by  the  Norman  noblemen. 

Having  tolerated  monopolistic  control  of  produc- 


CONCLUDING    OBSERVATIONS      325 

tion  and  distribution  in  the  United  States,  we  have 
the  spectacle  now  of  rich  and  powerful  monopolists 
maintaining  at  private  expense  special  bureaus  in 
the  government  departments  at  Washington ;  richly 
endowed  foundations  for  social  research ;  hospitals, 
libraries,  alms  houses  and  universities.  In  other 
words,  we  have  the  spectacle  of  certain  functions 
of  government  being  exercised  In  a  large  measure 
by  private  personages  and  masking  under  the  name 
of  philanthropy. 

In  one  sense,  the  movement  for  so-called  social 
justice  is  merely  an  effort  of  the  government  to 
take  hold  of  functions  It  has  permitted  individuals 
to  exercise,  heretofore  with  a  free  hand.  It  pur- 
poses to  establish  a  social  justice  not  compensatory 
for  wrongs  done  but  fundamental  to  citizenship ; 
a  social  justice  that  will  attack  evils  at  their  incep- 
tion and  not  at  their  outlet,  as  philanthropic  enter- 
prise is  wont  to  do;  a  social  justice,  which,  having 
given  the  wage  earner  a  fair  start,  still  leaves  him 
independent  and  free  to  follow  the  bent  of  his  own 
inclinations. 

Perhaps  the  era  of  an  industrial  democracy  is 
still  afar  off.  No  prophecy  Is  advanced  on  that 
point.  One  thing,  however.  Is  certain :  we  are  not 
going  to  realize  Industrial  peace  by  any  device  for 


326         INDUSTRIAL    ARBITRATION 

conciliation  and  arbitration,  voluntary  or  compul- 
sor}r^  until  we  have  given  more  attention  to  prepar- 
ing the  ground  for  this  very  desirable  state  of  af- 
fairs. We  are  not  to  expect  a  "country  without 
strikes"  suddenly  to  be  wished  upon  one  hundred 
million  people  by  the  effulgent  declamations  of  vain- 
glorious idealism  or  by  the  medieval  memorials 
of  anti-labor-union  millionaires.  Assuredly,  indus- 
trial peace  is  not  to  be  attained  by  either  process. 

Given  a  fairer  measure  of  industrial  equality,  con- 
ciliation and  arbitration  by  state  agency  will  no 
longer  be  very  necessary  because  the  two  dominant 
factors  in  industry — Capital  and  Labor — will  then 
have  only  minor  matters  for  adjudication  and  these 
will  be  settled  mutually,  without  the  interference 
of  the  state.  Conciliation  and  arbitration,  as  under- 
stood to-day,  presuppose  a  state  of  war  between 
Capital  and  Labor.  Remove  the  cause  of  the  con- 
flict and  industrial  peace  is  sure  to  follow.  It  will 
follow,  too,  in  certain  ratio  to  progress  in  removing 
basic  causes  of  the  conflict.  Conciliation  and  arbi- 
tration offer  no  permanent  relief.  They  do  not  pre- 
sume to  deal  with  industrial  problems  at  their  source. 
They  merely  temper  the  harshness  of  contending 
forces  at  its  outlet.  They  are  palliatives  at  best  and 
frequently  impotent  palliatives. 


CONCLUDING    OBSERVATIONS      327 

There  is  no  difference  between  the  functions  of 
conciliation  and  arbitration.  But  where  the  former 
is  effective,  it  is  a  reliable  sign  that  the  parties  have 
involved  no  really  vital  differences. 

For  the  present,  the  trade  agreement  is  substan- 
tially the  nearest  approach  to  a  satisfactory  method 
of  avoiding  strikes  and  lockouts.  But  the  trade 
agreement  presupposes  a  powerful  and  well-dis- 
ciplined body  of  employees  joined  together  in  a 
permanent  organization  and  acting  in  concert 
through  regularly  chosen  officers  and  committees. 
Organization,  then,  is  one  step  toward  industrial 
peace.  True,  organizations  of  working  men  may 
be  misled  by  rascals  entrusted  with  responsible  po- 
sitions. That,  indeed,  is  unfortunate.  But  the  ras- 
cality of  labor  leaders  probably  is  no  greater  than 
the  rascality  of  any  other  class  of  leaders,  indus- 
trial, commercial  and  political  included.  Also,  the 
leaders  of  several  strong  trade  unions — the  railroad 
organizations,  the  Typographical  Union,  the  Brick- 
layers, Masons  and  Plasterers'  International  Union, 
the  Carpenters',  and  the  United  Mine  Workers,  for 
instance — will  compare  favorably  in  intelligence, 
self-control  and  fairness  with  the  most  fair-minded 
of  our  captains  of  industry. 

While  organization  goes  forward,  the  state  can 


328        INDUSTRIAL   ARBITRATION 

do  something  toward  mitigating  the  harshness  of 
industrial  warfare.  The  federal  government  may 
exercise  a  stricter  control  over  the  flood  of  immi- 
gration with  which  we  are  annually  submerged. 
Just  as  a  man's  first  duty  is  to  his  family,  so  is  the 
nation's  first  duty  to  the  legions  of  working  men 
who  are  already  domiciled  in  this  country.  Hours 
of  labor  must  be  shortened  and  labor's  product  must 
be  protected  from  the  encroachments  of  baronial 
employers.  While  not  ignoring  the  tensely  prac- 
tical relation  of  wages  and  living,  the  program  by 
which  progress  toward  industrial  peace  is  to  be 
made  a  fact  should  emphasize  the  permanence  of 
employment  as  a  factor  in  human  happiness.  There 
are  two  chief  causes  of  unemployment  which  appear 
to  be  antithetical  but  which  in  fact  are  not.  They 
are  the  lack  of  vocational  training  and  the  present- 
day  intense  specialization  in  industry.  The  man 
who  can  do  nothing  well  is  your  day-laborer  and 
depends  for  his  subsistence  upon  the  chance  wage 
paid  to  workers  where  supply  and  demand  are  the 
determining  factors.  Here  is  always  found  the  sur- 
plus and  if  that  surplus  amounts  to  an  oversupply, 
It  is  difficult  to  find  work  at  a  bare  living  wage. 
Intense  specialization  of  industry,  the  dependence 
of  the  man  upon  the  machine.  Is  the  secorid  great 


CONCLUDING    OBSERVATIONS      329 

cause  of  unemployment.  Certain  minor  factors  in- 
fluence the  permanence  and  prosperity  of  particular 
industries,  a  third  cause.  In  the  Westinghouse  plant 
at  Pittsburgh,  nineteen  thousand  men  were  em- 
ployed in  1907.  In  191 1,  only  ten  thousand  were 
employed  but  the  output  was  the  same.  The  intro- 
duction of  labor-saving  machines  was  responsible. 
Vocational  guidance  will  determine  somewhat  in  ad- 
vance the  opportunities  in  particular  vocations,  and 
industry  must  apply  itself  more  seriously  to  a  scien- 
tific scheme  of  vocational  guidance  if  it  would  avoid 
the  distress  occasioned  by  the  substitution  of  ma- 
chines for  hand  labor,  a  surplus  labor  market  and 
unemployment. 

We  do  not  need  to  trouble  ourselves  with  such  ab- 
stract propositions  as  whether  society  owes  man  the 
right  to  labor  and  the  right  to  subsist  on  his  labor. 
We  may  content  ourselves  with  the  fact  that  gov- 
ernment has  safeguarded  the  possession  of  property 
and  subsidized  business.  Its  duty  to  labor,  at  least, 
is  equal  to  its  past  service  to  property  and  business. 

Markets  must  be  made  free  to  all  the  people.  Fic- 
titious arrangements  to  control  prices  either  must 
be  regulated  or  prohibited.  Housing  and  sanitary 
work  shops  must  receive  more  attention  from  the 
state   and  municipal  governments.    Social  insurance 


330         INDUSTRIAL    ARBITRATION 

must  be  established  as  a  precaution  against  pauper- 
ism, illiteracy  and  crime.  Women  and  children 
must  be  kept  out  of  the  factory  almost  altogether. 

Since  the  time  of  Jefferson,  millions  of  acres  have 
been  added  to  the  national  domain,  yet  about  all 
the  public  land  is  now  occupied.  A  network  of  rail- 
roads, canals  and  rivers  furnish  quick  transporta- 
tion over  and  through  the  land;  factories  have  ap- 
peared at  every  waterfall,  and  the  bowels  of  the 
earth  are  probed  to  find  coal  for  the  legion  of  fac- 
tories grouped  in  the  cities.  Our  forests  have  been 
denuded  by  the  ruthless  hand  of  private  enterprise. 
A  long  time,  we  have  been  a  factor  in  the  world's 
markets.  Millions  have  come  to  our  shores  to  pro- 
mote our  industrial  development,  yet  beat  down  our 
level  of  wages  and  standard  of  living.  Great  cities 
have  been  builded  over  night,  besmirching  the 
wholesome  air  of  the  prairie  with  the  filth  from 
squalid  tenements.  We  have  taken  under  our  shift- 
less wings  ten  million  negroes  and  let  them  drift 
with  little  educational  or  vocational  guidance.  We 
have  built  civilization — we  call  it  that — on  the  pre- 
historic principle  that  the  fittest  shall  survive.  Ex- 
cept for  women,  we  possess  the  universal  franchise 
of  a  politically  independent  people  but  we  have 
been  careless  with  our  political  rights  and  too  often 


CONCLUDING    OBSERVATIONS      331 

have  permitted  corruptionists  to  rule  over  us.  Our 
natural  wealth  has  been  appropriated  by  our  "fit- 
test" examples  of  greed  under  cover  of  corruption 
and  they  have  become  our  Industrial  barons,  who 
now  defy  the  government  which  permitted  them  to 
rob  us. 

Is  It  unnatural  that  the  sacred  rights  of  property 
are  being  assailed  ?  Is  it  marvelous  that  men  cry 
out  against  a  system  of  peonage  maintained  by  our 
industrial  barons  to  appease  an  insatiable  greed? 
Is  it  strange  that  echoes  from  our  Tower  of  Babel 
fill  our  hearts  with  dread  of  worse  things  yet  to 
come?  Shall  we  expect — shall  we  hope  that  out  of 
this  is  to  come  industrial  peace? 

Lawrence,  Calumet  and  Ludlow  are  only  the 
beginnings  of  our  industrial  warfare.  Heretofore, 
men  have  fought  blindly  without  common  ideals, 
with  no  fixed  purpose.  Such  organizations  as  the 
I.  W.  W.  have  given  the  workers,  misguided  as 
they  may  be,  a  philosophy.  They  have  a  tangible 
program  now.  Their  struggle  Is  a  struggle  for  a 
"cause."  It  has  aspects  of  a  pristine  religion.  It 
is  more  than  a  religion  because  It  Is  the  religion  of 
empty  bellies  that  cry  out  for  food. 

The  impression  created  on  the  country  by  one 
section  of  a  political  platform  drafted  by  the  com- 


332         INDUSTRIAL    ARBITRATION 

vention  of  a  new  party  in  the  summer  of  191 2  was 
no  less  profound  than  the  impression  created  on  the 
nameless  followers  of  the  man,  who,  with  a  few  in- 
timate friends,  had  written  the  platform. 

That  platform,  presenting  an  elaborate  scheme 
for  the  amelioration  of  industrial  conditions — a 
scheme  with  which  the  sympathies  of  a  great  mul- 
titude grew  as  the  campaign  progressed — is  des- 
tined to  fulfill  a  great  mission.  It  is  destined  to 
lift  the  veil  from  the  eyes  of  countless  thousands 
who,  theretofore,  had  no  acquaintance  with  or  un- 
derstanding of  the  mechanism  of  a  complex  indus- 
trial state.  It  was  an  educational  measure  espoused 
by  propagandists  who  knew  how  to  conduct  an  edu- 
cational campaign.  There  was  nothing  really  new 
in  that  section  of  the  platform  devoted  to  "Social 
and  Industrial  Justice."  It  merely  reiterated  many 
"demands"  contained  for  many  years  in  the  legisla- 
tive program  of  the  American  Federation  of  Labor 
and  the  political  demands  of  the  Socialist  party. 

"Social  and  Industrial  Justice,"  so  called,  Is  a 
compromise  between  the  resistance  which  plutocracy 
musters  to  innovations  affecting  the  domination  of 
government  In  the  Interests  of  business  and  the  rad- 
ical tenets  of  Socialism — an  Intermediate  step  be- 
tween Individualism  and  collectivism.     It  purposes 


CONCLUDING    OBSERVATIONS      333 

to  temper  individualism  without  accepting  the  antip- 
odal social  structure  propagated  by  the  collectivists. 
It  does  not  abandon  the  present  economic  system, 
even  though  it  purposes  to  go  much  farther  than 
government  has  yet  gone  in  modifying  it.  It  pre- 
supposes an  organic  state  of  society.  It  recognizes 
the  substance  of  the  ideals  of  Socialism  without  ac- 
cepting its  methods.  Its  inherent  argument  is  that 
the  realization  of  its  program  will  eliminate  any 
immediate  need  of  a  socialized  state.  The  program 
of  the  new  party  and  the  collectivist  program  of 
the  Socialist  party  proceed  from  a  common  start- 
ing-point— the  admission  that  our  social  and  indus- 
trial structure  is  out  of  plumb. 

We  must  not  look  very  much  to  artificial  devices 
for  relief.  If  we  would  avoid  strikes,  we  must  not 
expect  they  are  to  be  avoided  by  a  patchwork  pro- 
gram which  ignores  fundamental  causes.  We  must 
have  a  larger  measure  of  "social  and  industrial  jus- 
tice." We  must  look  carefully  to  the  welfare  of 
the  worker — hours,  conditions  of  work  and  wages. 
We  must  assist  him  in  every  way  possible  to  become 
an  economically  independent  unit  of  society. 

Present  tendencies  are  not  lacking  in  inspiration 
to  those  persons  who  demand  that  our  government 
take  hold  of  public  functions,  functions  which  here- 


334        INDUSTRIAL    ARBITRATION 

tofore  have  been  exercised  largely  by  private  and 
voluntary  associations.  We  may  well  believe  that 
these  present  tendencies  foreshadow  the  advent  of 
a  period  when  the  harshness  of  the  industrial  con- 
flict will  have  greatly  subsided. 

Perhaps  the  increase  in  wages  has  not  quite  kept 
pace  with  the  increase  in  cost  of  living  but  the  tend- 
ency of  wages  and  living  has  been  upward  in  both 
cases  and  the  diff"erence  may  not  be  especially  Im- 
portant. Fourteen  out  of  fifteen  of  the  principal 
articles  of  food  in  the  last  month  of  191 3  showed 
an  average  increase  of  seventy-nine  and  five-tenths 
per  cent.  In  retail  prices  as  compared  with  the  prices 
prevailing  during  the  ten-year  period  from  1890  to 
1900.  One  article  of  food,  sugar,  showed  a  decrease 
of  five  and  nine-tenths  per  cent. 

Wholesale  prices  of  cloths  and  clothing  have  been 
tending  upward  for  many  years.  Prices  in  1909 
were  twelve  per  cent,  in  advance  of  prices  in  1900. 
Fuel  and  lighting  show  an  advance  of  six  and  nine- 
tenths  per  cent,  and  house  furnishing  goods  an  in- 
crease of  five  and  three-tenths  per  cent,  for  the 
same  period. 

Rents,  generally,  have  shown  a  substantial  ad- 
vance in  the  last  ten  or  fifteen  years  but  the  in- 
crease has  not  been  so  great,  except  in  a  few  cities, 


CONCLUDING    OBSERVATIONS      335 

as  the  increase  in  other  items  of  living.  The  Mas- 
sachusetts Commission  on  the  Cost  of  Living,  which 
made  a  report  in  1910,  found  that  rents  respond 
more  slowly  to  changed  conditions  than  do  many 
of  the  commodities  of  life.  Increased  rents  in  Mas- 
sachusetts, according  to  the  commission,  were  due 
to  the  increased  cost  of  building  materials,  the  in- 
creased cost  of  labor,  higher  standards  of  construc- 
tion fixed  by  the  building  laws  and  a  general  de- 
mand for  conveniences  which  a  few  years  ago  were 
luxuries.  The  commission  estimated  the  advance 
in  rents  for  the  fifteen  years  preceding  1 9 10  for 
working  people's  dwellings  and  tenements  at  twelve 
per  cent.  In  all  probability,  this  would  be  pretty 
near  the  average  increase  for  the  whole  country. 
Certain  industrial  towns  like  Birmingham,  Pitts- 
burgh and  Cleveland  might  show  a  higher  rate  of 
increase,  due  to  the  late  abnormal  industrial  devel- 
opment and  the  shortage  of  houses  for  the  working 
people. 

Combining  the  ten  principal  occupations  in  lum- 
ber mill  work  and  the  furniture  industry,  wages 
were  twenty-nine  per  cent,  higher  in  1912  than  in 
1890.  Wages  paid  in  the  principal  occupations  in 
the  cotton,  woolen  and  silk  industries,  not  including 
finishing,  were  sixty-one  and  five-tenths  per  cent. 


336        INDUSTRIAL    ARBITRATION 

higher  In  191 2  than  In  1890.  Wages  were  thirty- 
four  and  eight-tenths  per  cent,  higher  per  hour  In 
1 91 2  than  In  1890  In  the  principal  occupations  In 
the  boot  and  shoe  Industry.  There  was  an  Increase 
of  thirty-six  and  one-tenth  per  cent.  In  the  wages 
per  hour  In  the  principal  occupations  of  the  hosiery 
and  knit  goods  manufactories  In  191 2  as  compared 
to  1890.  Wages  per  hour  of  eleven  principal  occu- 
pations In  the  car  building  industry  Increased  nine 
and  seventy-five-hundredths  per  cent,  from  1907  to 
1912.  Cigar  making  and  the  clothing  Industries 
show  a  considerable  increase  in  wages  during  the 
last  few  years. 

In  the  meantime,  hours  of  labor  per  week  have 
shown  a  steady  decline  amounting  to  three  and 
eight-tenths  per  cent.  In  lumber  work  and  furniture 
in  191 2  as  compared  to  1890;  eight  and  one-tenth 
per  cent,  for  the  cotton,  woolen  and  silk  Industries ; 
six  and  four-tenths  per  cent,  for  the  boot  and  shoe 
industry  and  seven  and  nine-tenths  per  cent,  for 
hosiery  and  knit  goods. 

The  average  price  of  all  food  products,  weighted 
according  to  the  average  consumption,  of  various 
articles  In  working  men's  families  was  twenty-nine 
and  eight-tenths  per  cent,  higher  In  191 3  than  in 
1907,  while  the  union  scale  of  wages  In  the  prin- 


CONCLUDING    OBSERVATIONS      337 

cipal  occupations  in  the  bakery,  building,  granite 
and  stone  mill  workers  and  printing  trades  was  an 
average  of  only  ten  and  seven-tenths  per  cent, 
higher  in  1913  than  in  1907.  Hours  of  labor  were 
an  average  of  four  and  five-tenths  per  cent,  less  per 
week  in  these  trades  in  1 91 3  than  in  1907. 

Unemployment  appears  to  be  increasing.  Ac- 
cording to  the  census  of  1890,  fifteen  and  one-tenth 
per  cent,  of  all  persons  having  gainful  occupations 
were  not  employed  at  such  occupations  at  some  time 
during  the  year.  In  1900,  the  percentage  was 
twenty-two  and  three-tenths.  In  1902,  an  average 
of  fourteen  and  seven-tenths  per  cent,  of  the  organ- 
ized working  men  of  New  York  City  were  reported 
idle  at  the  end  of  each  month.  In  191 1  the  per- 
centage was  twenty-one  and  five-tenths.  There  is 
a  hopeful  sign  in  the  attention  which  several  states 
are  giving  to  this  subject.  A  report  of  the  New 
York  Department  of  Labor  made  in  1908  showed 
that  thirty-three  per  cent,  of  the  membership  of 
trade  unions  were  out  of  work  in  January  of  that 
year  as  compared  to  eighteen  per  cent,  the  average 
for  the  five  years  preceding.  The  total  number 
of  unemployed  workmen,  not  including  women  and 
children,  in  the  United  States  for  January,  1908, 
was  estimated  at  two  hundred  fifty  thousand.    These 


338         INDUSTRIAL    ARBITRATION 

figures  are  not  meant  to  be  typical  but  they  do  show 
the  effect  of  the  business  depression  which  began 
in  1907.  It  is  estimated  that  the  average  miner 
is  out  of  work  one-third  of  the  time  in  this  country 
and  one-fifth  of  the  time  in  other  countries.  Fif- 
teen states  had  established  free  employment  offices 
in  1 91 3  and  there  were  municipal  employment  bu- 
reaus in  eight  large  cities.  Unemployment  should 
be  reduced  as  a  consequence  of  what  the  federal 

TABLE  NO.  17 

NUMBER   AND    PERCENTAGE   OF    MEMBERS   OF    LABOR   UNIONS    IDLE, 

1897-1912* 

Throughout  first  At  the  end  of 

quarter  March 

Year                    Number  Percentage    Number  Percentage 

1897 35,381  24.8  43,654  30.6 

1898 18,102  10.1  37,857  21.0 

1899 22,658  13.1  31,751  18.3 

1900 22,895  10.1  44,336  20.0 

1901  26,841  11.3  42,244  18.5 

1902 \(i:]16  62  36,710  13.6 

1903 19,310  5.5  41,941  12.1 

1904 55,710  14.6  103,995  27.2 

1905 31,638  8.7  54,916  15.1 

1906 24,746  6.5  37,2^7  9.9 

1907 55,624  13.8  77,270  19.1 

1908 101,466  26.3  138,131  35.7 

1909 50,477  14.3  74,543  21.1 

1910 28,411  7.3  62,851  16.1 

1911  46,021  9.7  96,608  20.3 

1912 42,395  9.2  89,718  19.6 

•  Bulletin  of  New  York  Department  of  Labor  No.  51,  p.  102. 


CONCLUDING    OBSERVATIONS      339 
TABLE  NO.  18 

PERCENTAGE   OF    IDLENESS    DUE   TO    EACH    CAUSE,    FIRST    QUARTER, 
1906-1912* 

1906  1907  1908  1909  1910  1911  1912 
Lack  of  work. .  44.9  67. Z  89.6  81.3  66.8  82.7  80.0 
Lack  of  stock. 

Weather  

Labor  disputes 
Disability  .... 
Other  causes.. 
Cause  not  state( 

Total 100.0    100.0    100.0    100.0    100.0    100.0    100.0 


Z.7 

2.4 

0.4 

1.1 

4.2 

0.6 

0.5 

28.7 

20.0 

5.8 

10.6 

11.7 

8.8 

9.8 

12.9 

5.2 

1.1 

2.0 

10.9 

3.4 

4.7 

8.1 

4.6 

2.8 

4.6 

6.1 

3.9 

4.6 

1.5 

0.4 

6.2 

0.2 

0.1 

0.4 

0.2 

0.2 

0.1 

0.1 

0.2 

0.2 

0.2 

0.2 

•  Bulletin  of  New  York  Department  of  Labor  No.  51,  p.  103. 

government  and  the  several  states  are  doing  to  make 
vocational  education  and  vocational  guidance  uni- 
versal and  compulsory.  It  may  be  found  necessary 
to  establish  an  insurance  system  against  involuntary 
unemployment. 

The  last  few  years  have  witnessed  a  rising  flood 
of  legislation  to  control  markets,  housing,  the  san- 
itation of  work  shops,  and  woman  and  child  labor. 
Five  states  passed  minimum  wage  laws  during  the 
legislative  sessions  of  191 3.  California,  Oregon  and 
Washington  created  industrial  welfare  commissions 
with  the  power  to  establish  a  minimum  wage  for 
women  and  minors,  Colorado  passed  a  minimum 
wage  law  applying  to  women  and  minors,  and  Utah, 
by  statute,  fixed  an  absolute  minimum  scale  for  fe- 


340        INDUSTRIAL    ARBITRATION 

male  workers.  Massachusetts  has  maintained  a 
commission  that  is  working  on  the  subject  since 
1912.  A  score  of  states  have  some  provision  for 
pensioning  dependent  mothers.  Social  insurance 
against  invalidity  and  old  age  is  growing  in  popu- 
larity. Practically  all  the  great  railroads  and  sev- 
eral industrial  corporations  now  maintain  old-age 
and  retirement  pension  funds  in  connection  with 
their  welfare  work,  but  employees  look  upon  such 
schemes  with  suspicion.  Louis  D.  Brandeis  has 
called  such  schemes  a  "new  form  of  peonage."  It 
were  much  better  for  the  states  to  undertake  this 
work  and  leave  the  wage  earner  free  from  tacit 
dependence  upon  the  employer.  State  insurance 
against  industrial  accidents  is  a  part  of  the  new 
movement  to  secure  independence  of  the  workers 
against  public  or  private  charity. 

All  such  legislation  reflects  a  hopeful  sign  in  the 
passing  of  illiteracy.  In  1880  the  whole  number 
of  illiterates  in  the  country  was  seventeen  per  cent, 
of  the  population  ten  years  of  age  and  over.  In 
1890  the  percentage  had  risen  to  twenty-six  and 
seventy-three-hundredths  but  since  that  time  there 
has  been  a  gradual  decline.  In  1900,  twenty-one 
and  two-tenths  per  cent,  of  the  population  ten  years 
of  age  and  over  was  illiterate,  while  in   1910  the 


CONCLUDING    OBSERVATIONS      341 

percentage  had  decreased  by  more  than  one-half,  it 
being  only  seven  and  seven-tenths  per  cent,  at  the 
last  census. 

It  is  a  matter  of  interest  that  five  and  one-tenth 
per  cent,  of  the  urban  population,  ten  years  of  age 
and  over,  is  illiterate  while  the  percentage  of  rural 
population  that  is  illiterate  is  ten  and  one-tenth  per 
cent.  Universal  compulsory  and  vocational  educa- 
tion will  rid  the  country  of  this  army  "with  their 
banners  of  blackness  and  darkness  inscribed  with 
the  legends  of  illiteracy,  ignorance,  weakness,  help- 
lessness and  hopelessness — too  large  for  the  safety 
of  our  democratic  institutions,  for  the  highest  good 
of  society  and  for  the  greatest  degree  of  material 
prosperity." 

The  new  movement  for  special  training  for  defi- 
nite vocations  is  the  complement  of  that  wise  system 
by  which  every  child  In  the  land  is  required  to  ob- 
tain a  minimum  of  education  for  life  and  wholesome 
living. 

Pauperism  has  not  Increased  in  proportion  to  the 
population  but  the  number  of  Inmates  of  benevolent 
Institutions  has  increased  more  than  three  times  as 
fast  as  the  population  since  1890.  The  abnormal 
increase  In  the  Inmates  of  benevolent  Institutions 
may  be  attributed  to  increasing  feeble-mindedness 


342         INDUSTRIAL    ARBITRATION 

and  Insanity.  Increased  feeble-mlndedness  and  in- 
sanity are  due  partially  to  lax  marriage  laws,  some- 
what to  intemperance  and  otherwise  to  the  over- 
strenuous  struggle  for  existence.  The  increase  in 
population  of  the  whole  country  from  1890  to  19 10 
was  forty-seven  and  three-tenths  per  cent.  Paupers 
in  almshouses  increased  fifteen  and  two-tenths  per 
cent,  during  the  same  period,  while  the  inmates  of 
benevolent  institutions  increased  one  hundred  forty- 
one  and  two-tenths  per  cent.  The  increase  of  pris- 
oners in  institutions  and  juvenile  delinquents  was 
slightly  less  than  the  increase  in  population  during 
the  twenty-year  jjeriod,  being  forty  and  four-tenths 
per  cent. 

The  English  board  of  trade,  which  made  an  in- 
quiry into  working-class  rents,  housing,  retail  prices, 
rates  of  wages  in  certain  occupations  in  the  principal 
industrial  towns  of  the  United  States  in  1909,  found 
"much  evidence  of  an  activity  of  competition  among 
owners  and  builders  and  of  a  degree  of  material 
prosperity.  .  .  .  tending  very  widely  to  raise 
its  standard."  Unsatisfactory  housing  conditions 
were  found  among  the  late  immigrants  to  the  United 
States,  particularly  among  Italian  colonies  in  New 
York,  Chicago  and  Boston,  the  Greeks  in  Lowell, 
and  Poles,  Lithuanians  and  other  Slavonic  people 


CONCLUDING    OBSERVATIONS      343 

in  Pittsburgh  and  Chicago.  But  powerful  influences 
to  improve  the  housing  of  working  people  were 
found  generally.  The  tendency  toward  improved 
conditions  was  attributed  to  increasing  facilities  for 
transit,  the  removal  of  physical  barriers  by  the  con- 
struction of  bridges  and  tunnels,  and  the  higher 
standard  of  demand  that  follows  an  increasing  pros- 
perity. 

"The  demand  for  improved  housing  itself  is,  in- 
deed," the  board  of  trade  found,  "a  natural  accom- 
paniment to  similar  changes  that  are  taking  place 
as  regards,  for  instance,  amusements,  clothing  and 
food,  in  all  of  which  a  great  variety  appears  to  be 
resulting  from  a  vast  and  an  increasingly  effective 
demand." 

The  passage  of  the  New  York  tenement  house 
law  in  1901  put  an  end  to  the  building  of  the  dumb- 
bell type  of  tenement  house  in  that  city.  The  pas- 
sage of  this  act  really  marked  the  beginning  of  the 
present-day  movement  for  better  housing  in  the 
United  States.  For  more  than  a  decade,  voluntary 
associations,  civic  leagues,  chambers  of  commerce, 
municipal  and  state  commissions  have  collected  and 
disseminated  broadcast  valuable  information  to 
show  the  need  of  better  housing.  The  Federal  Bu- 
reau of  Labor  published  a  special  report  on  The 


344        INDUSTRIAL    ARBITRATION 

Housing  of  the  Work  People  as  early  as  1895.  In 
the  same  year  a  tenement-house  committee  of  the 
New  York  legislature  made  a  report.  But  a  survey 
of  certain  tenement-house  districts  in  Boston  had 
been  made  as  early  as  1889.  The  Wisconsin  Bureau 
of  Labor  and  Industrial  Statistics  devoted  much  of 
its  1906  report  to  the  subject  of  housing*.  The  first 
national  conference  on  housing  was  held  in  191 1, 
in  which  year  Massachusetts  established  a  commis- 
sion on  homesteads  for  working  people.  This  com- 
mission was  continued  by  the  legislatures  of  191 2 
and  191 3.  Pursuant  to  an  investigation  and  report 
by  a  commission  appointed  In  1903,  New  Jersey 
passed  a  housing  law  applying  to  the  whole  state. 
Connecticut  passed  a  housing  law  In  1905  and  Wis- 
consin in  1907.  The  first  Wisconsin  act,  having 
been  declared  unconstitutional,  was  followed  by  two 
acts  in  1909.  Chicago,  Boston,  Baltimore,  San 
Francisco,  Los  Angeles  and  Cleveland  all  had  un- 
dertaken to  regulate  the  construction  of  tenement 
houses  before  19 10.  The  ordinances  of  these  cities 
sought  to  regulate  encumbrances  to  fire-escapes, 
stairways,  hall  and  stair  partitions,  shafts,  light  and 
ventilation,  height  of  buildings,  areas  of  yards, 
courts,  rooms  and  cellars,  water  supply  and  water- 
closet  accommodations,  overcrowding  and  sanitation 


CONCLUDING    OBSERVATIONS      345 

generally.  Indiana  passed  an  important  housing 
act  in  19 1 3. 

This  varied  and  nation-wide  activity  is  a  sign  of 
hope  to  those  who  believe  the  welfare  of  the  work- 
ing people  comprehends  other  things  besides  wages, 
hours  and  working  conditions  in  the  factory,  proper. 
May  we  not  expect  that  this  wide-spread  interest 
in  the  home  life  of  people  who  work  for  wages 
will  promote  at  its  source  the  solution  of  a  problem 
which  industrial  arbitration  deals  with  but  superfi- 
cially ? 

As  far  as  industrial  conciliation  and  arbitration 
are  concerned,  it  appears  that  they  may  accomplish 
something  of  real  merit  where  employers  are  far 
sighted  enough  and  human  enough  to  deal  with 
their  employees  in  a  collective  capacity.  Otherwise, 
arbitration  of  whatever  kind  is  foredoomed  to  fail- 
ure because  the  right  to  organize  is  one  which  no 
arbitration  board  can  well  deny  with  the  assurance 
that  Its  findings  will  be  respected  and  its  award 
carried  out. 

Nor  does  it  seem  at  all  possible  in  this  country 
to  prohibit  strikes  with  any  measure  of  success. 
Strikes  seldom  occur  except  under  the  most  aggra- 
vated conditions  and  then  the  law  is  little  respected 
by  either  party. 


346         INDUSTRIAL    ARBITRATION 

It  is  true  that  strikes  and  lockouts  have  been  re- 
duced to  a  minimum  in  the  Australian  colonies  and 
New  Zealand,  but  the  arbitration  laws  of  those  coun- 
tries were  prefaced  on  the  theory  that  employees 
and  employers  were  fully  organized.  Furthermore, 
there  are  no  sweated  industries  in  those  countries, 
due  to  the  early  enactment  of  minimum  wage  laws. 
The  theory  has  prevailed  there  that  no  industry  is 
entitled  to  exist  which  can  not  pay  a  living  wage. 
A  wide  diversity  of  nationalities  engaged  in  indus- 
try and  consequently  a  varying  standard  of  living 
— problems  we  have  in  the  United  States — are  un- 
known in  the  Australian  commonwealth  and  in  New 
Zealand. 

The  time  is  coming  but  it  has  not  yet  arrived, 
when  the  interests  of  the  third  party  in  an  industrial 
controversy — the  public — will  be  regarded  as  su- 
perior to  the  present  right  of  the  employer  to  em- 
ploy whom  he  will,  when  he  will  and  pay  what  he 
wants  to  pay ;  and  the  right  of  the  employee  to  work 
when  he  will  and  strike  when  he  does  not  receive 
what  he  thinks  he  should  have.  The  time  has  not 
yet  arrived,  because  the  employee,  deprived  of  the 
right  to  strike,  is  at  a  very  serious  disadvantage  in 
the  present  regime  of  industrial  inequality. 

He  can  not  afford  to  arbitrate  the  question  of 


CONCLUDING    OBSERVATIONS      347 

whether  he  shall  be  permitted  to  belong  to  a  trade 
union  and  he  should  not  be  compelled  to  arbitrate 
the  questions  of  whether  he  shall  purchase  his  food 
and  clothing  in  the  company  store  of  his  employer 
and  whether  he  shall  be  compelled  to  give  up  a  part 
of  his  wages  to  maintain  a  hospital  or  insurance 
fund.  These  propositions  are  so  manifestly  one- 
sided and  unjust  as  to  be  beyond  the  scope  of  arbi- 
tration. They  belong  in  the  same  category  as  the 
question  Mr.  Roosevelt  had  in  mind  in  discussing 
international  peace  arbitration  when  he  said  the 
United  States  should  not  agree  to  arbitrate  a  ques- 
tion of  national  honor.  No  opinion,  however,  is 
advanced  on  Mr.  Roosevelt's  contention. 

It  is  unfortunate  that  elementary  justice  must  be 
won  at  the  expense  of  a  strike  and  therefore  at  se- 
rious discomfort  to  the  public;  yet  it  were  better 
to  win  justice  by  a  strike  than  to  endure  injustice. 
Also,  it  may  be  doubted  whether  the  public  is  not 
estopped  from  pleading  its  own  discomfort  so  long 
as  it  permits  aggravated  conditions  to  continue.  In 
all  fairness  it  may  be  said  that  a  strike  is  often  just 
what  the  community,  where  it  occurs,  deserves. 

Constitutional  limitations  matter  little  as  far  as 
the  ultimate  solution  of  the  problem  is  concerned. 
These  restrictions  will  pass  a\vay,  just  as  the  restric- 


348         INDUSTRIAL    ARBITRATION 

tions  against  state  laws  limiting  hours  of  labor,  fix- 
ing standards  of  sanitation  and  requiring  safety  de- 
vices have  passed  away.  Nor  is  the  contention  of 
the  employer  tenable  that  a  fundamental  right  is 
attacked  when  he  is  compelled  to  abide  the  opinion 
of  an  outside  third  party,  a  board  of  arbitration, 
as  to  what  he  shall  pay,  how  long  and  under  what 
conditions  his  employees  will  work.  These  rights 
are  not  fundamental.  They  are  law  given,  and  by 
the  law  they  may  be  taken  away. 

From  the  fact  that  labor  is  bound  to  be  the  ag- 
gressor in  a  majority  of  industrial  disputes,  since 
its  mission  for  the  next  generation  is  to  raise  work- 
ing standards,  it  does  not  seem  prudent  at  this  time 
to  impose  legal  restrictions  against  the  right  to  strike, 
even  though  it  were  not  contrary  to  the  state  and 
federal  charters  to  do  so.  An  exception  may  be 
made  of  transportation  companies,  upon  which  the 
public  is  vitally  dependent,  but  otherwise  it  Is  ex- 
tremely doubtful  whether  the  Canadian  scheme  of 
prohibiting  strikes  and  lockouts  before  official  in- 
vestigation, Is  adapted  to  present  industrial  and  so- 
cial conditions  in  this  country.  It  is  better  not  to 
attempt  to  restrict  the  right  to  strike  than  to  experi- 
ence the  collapse  of  a  scheme,  devised  for  a  higher 
industrial  order  than  ours. 


CONCLUDING    OBSERVATIONS      349 

Recent  years  have  seen  a  tremendous  growth  in 
the  public  utilities  of  the  country,  water,  light,  gas, 
power  and  street  railway  companies.  Not  only  has 
the  exploitation  of  these  enterprises,  through  stock- 
jobbing schemes,  seriously  interfered  with  the  public 
service  but  wages  have  been  held  at  a  low  level  to 
augment  the  surplus  for  dividends  on  watered  stock. 
Here,  again,  we  must  look  to  basic  wrongs,  if  we 
are  to  expect  peace. 

To  sum  up  briefly  the  conclusions  herein  set  forth : 

1.  Neither  voluntary  nor  compulsory  arbitration 
will  work  with  any  conspicuous  degree  of  success 
in  this  country  until  the  worker  has  been  set  free 
economically;  until  he  is  given  a  compelling  voice 
against  his  employer  as  to  his  wages,  hours  and 
working  conditions. 

2.  The  worker  may  be  freed  economically 
through  the  Insistence  of  the  state  that  he  be  dealt 
with  in  a  collective  capacity,  if  he  so  desires ;  also 
by  legislative  measures  protecting  him  against  the 
enormous  power  his  employer  wields  in  the  new 
state  of  industry;  finally,  by  restrictive  and  con- 
structive measures  such  as  the  minimum  wage  in 
sweated  Industries,  stricter  immigration  standards^ 
sanitary  and  health  standards,  social  Insurance  in- 
cluding guaranties  against  unemployment,  and  vo- 


350         INDUSTRIAL    ARBITRATION 

cational  education,  including  part-time  and  evening 
schools. 

3.  When  these  steps  have  been  taken  the  public 
may  well  insist  upon  its  right  to  prevent  strikes  and 
lockouts  altogether  in  those  industries  to  which  the 
public  looks  for  daily  conveniences.  Nor  will  the 
public  fail  to  prevent  strikes  and  lockouts,  where  it 
is  interested  in  preventing  them,  if  its  obligation  to 
the  workers  of  a  particular  industry  has  been  cou- 
rageously and  completely  fulfilled.  It  is  the  con- 
sciousness of  public  irresponsibility  for  the  wages 
and  conditions  of  wage  earners  that  they  are  able 
to  stop  the  traffic  of  a  street  railway  system,  for 
instance,  and  force  concessions  from  the  employer. 

4.  Compulsory  arbitration  will  fail  now  because 
progress  toward  primary  justice  for  the  worker  must 
be  accomplished  through  constant  pressure  by  the 
working  man  and  his  allies.  There  should  be  no 
abatement  of  proletarian  pressure  merely  because 
an  arbitration  board  has  fixed  a  term  award. 

5.  Progress  must  be  realized  In  a  steady  stream 
of  constructive,  humanitarian  measures  so  that  the 
employer  may  adjust  the  process  of  production  and 
distribution  to  the  new  and  changing  standards 
which  an  alert  social  consciousness  requires  him  to 
maintain.     Specifically,  if  the  operation  of  a  new 


CONCLUDING    OBSERVATIONS      351 

law  is  going  to  increase  the  cost  of  a  manufactured 
article,  the  employer  must  be  permitted  to  shift  the 
increased  cost  to  the  consumer  without  sudden  re- 
vulsions in  the  channels  of  trade. 

6.  The  Massachusetts  or  New  York  system  of 
conciliation  and  arbitration  may  accomplish  very 
much  toward  creating  friendly  relations  between 
employers  and  employees  and  promoting  peace  in 
industry.  The  Wisconsin  system  may  be  more  prac- 
tical in  states  where  industry  is  somewhat  less  de- 
veloped. 

7.  Although  we  probably  suffer  more  from 
strikes  and  lockouts  than  any  other  country,  we  are 
able  to  report  progress  toward  basic  remedies,  in 
recent  years;  also  some  success  in  making  universal 
the  "American  standard"  of  living  rather  than  mak- 
ing universal  the  lower  standard  prevailing  abroad. 
These  are  the  sources  of  our  hope,  the  explanations 
of  our  continued  faith  in  political  liberty,  not  as  an 
end  in  itself,  but  as  a  means  of  gaining  a  greater 
measure  of  economic  independence  for  wage 
earners. 

THE    END 


APPENDIX 


APPENDIX 

INTERNATIONAL  ARBITRATION  AGREEMENT  BETWEEN 
THE  AMERICAN  NEWSPAPER  PUBLISHERS'  AS- 
SOCIATION  AND   THE   INTERNATIONAL 
TYPOGRAPHICAL    UNION 

(Effective  May  I,  191 2) 

IT  is  agreed  between  the  American  Newspaper 
Publishers'  Association,  by  H.  N,  Kellogg, 
Charles  H.  Taylor,  Jr.,  and  George  C.  Hitt,  consti- 
tuting its  Special  Standing  Committee,  duly  author- 
ized to  act  in  its  behalf,  and  the  International 
Typographical  Union,  by  James  M.  Lynch,  Hugo 
Miller  and  John  W.  Hays,  constituting  its  Executive 
Council,  duly  authorized  to  act  in  its  behalf,  as 
follows : 

Section  i.  On  and  after  May  i,  19 12,  and  until 
May  I,  191 7,  any  member  of  the  American  News- 
paper Publishers'  Association  who  is  conducting  a 
union  department  under  the  jurisdiction  of  the  In- 
ternational Typographical  Union  shall  have  the 
guaranties  hereinafter  set  forth  whenever  the  re- 

iii 


iv  APPENDIX 

quirements  of  this  arbitration  agreement  are  ob- 
served. This  agreement  sliall  cover  all  contracts 
with  local  unions,  whether  in  writing  or  oral  under- 
standings. Oral  understandings  shall  be  under- 
stood as  applying  to  instances  wherein  union  scales 
are  being  paid,  but  where  there  are  no  written 
agreements  covering  specified  periods  of  time.  Such 
oral  understandings  which  are  not  for  a  definite 
period  may  be  terminated  by  either  side  on  thirty 
days'  notice  in  writing.  This  agreement  shall  em- 
brace all  contracts  of  either  form  which  are  in  effect 
on  April  30,  191 2,  and  contracts  of  subsequent  date 
which  have  been  approved  by  the  president  of  the 
International  Typographical  Union. 

Sec.  2.  To  acquire  the  protection  of  the  guaran- 
ties embodied  in  this  agreement  an  Individual  Arbi- 
tration Contract  must  be  executed  in  quadruplicate 
in  the  form  prescribed  in  this  agreement.  The 
holder  of  such  Individual  Arbitration  Contract  shall 
be  entitled  to  the  protection  guaranteed  by  the  pro- 
visions of  this  agreement  and  the  terms  of  the  Indi- 
vidual Arbitration  Contract  in  respect  to  any  con- 
tract such  member  may  have  with  a  local  union  of 
the  International  Typographical  Union. 

Sec.  3.  Any  publisher  who  holds  an  Individual 
Arbitration  Contract  under  the  prior  agreement  be- 


APPENDIX  v 

tween  the  parties  hereto  which  terminates  May  I, 
1912,  shall  be  protected  hereunder  if  before  May  I, 
1912,  he  shall  have  secured  an  Individual  Arbitra- 
tion Contract  in  accordance  with  the  provisions  of 
this  agreement,  as  set  forth  in  section  I  of  the  Code 
of  Procedure. 

Sec.  4.  Subject  to  the  conditions  hereinbefore 
prescribed  every  member  of  the  American  News- 
paper Publishers'  Association  holding  an  Individual 
Arbitration  Contract  shall  have  the  following  guar- 
anties : 

(a)  He  shall  be  protected  against  walk-outs, 
strikes  or  boycotts  by  the  members  of  the  union  or 
unions  with  which  he  has  contractual  relations  un- 
der this  agreement  and  against  any  other  form  of 
concerted  interference  by  them  with  the  usual  and 
regular  operation  of  any  of  his  departments  of  labor. 

(b)  In  the  event  of  a  difference  arising  between 
a  publisher  having  an  Individual  Arbitration  Con- 
tract and  any  local  union  a  party  thereto,  all  work 
shall  continue  without  Interruption  pending  pro- 
ceedings looking  to  conciliation  or  arbitration,  either 
local  or  International,  and  the  wages,  hours  and 
working  conditions  prevailing  at  the  time  the  differ- 
ence arises  shall  be  preserved  unchanged  until  a 
final  decision  of  the  matter  at  issue  shall  be  reached. 


vl  APPENDIX 

(c)  All  differences  which  can  not  be  settled  by 
conciliation  shall  be  referred  to  arbitration  in  the 
manner  stipulated  in  this  agreement. 

Sec.  5.  All  differences  arising  under  an  existing 
written  contract,  or  an  oral  understanding,  which 
involve  the  application  of  the  International  Arbitra- 
tion Agreement,  the  Code  of  Procedure,  or  any 
clause  or  clauses  in  contracts,  or  the  interpretation 
to  be  placed  upon  any  part  or  parts,  of  any  agree- 
ments, which  can  not  be  settled  by  conciliation,  shall 
be  referred  to  local  arbitration  if  so  required  by  the 
local  contract,  but  If  not  shall  be  submitted  to  the 
chairman  of  the  Special  Standing  Committee  of  the 
American  Newspaper  Publishers'  Association  and 
the  president  of  the  International  Typographical 
Union,  together  with  the  arguments  and  briefs  of 
both  parties,  and  an  agreed  statement  of  facts  In  the 
controversy,  accompanied  by  a  joint  letter  of  trans- 
mittal, certifying  that  each  party  is  familiar  with 
the  contents  of  all  documents.  In  case  these  two 
officials  can  not  reach  a  decision  upon  the  Issues  in- 
volved, their  differences  shall  be  submitted  to  the 
International  Board  of  Arbitration. 

Sec.  6.  All  differences  other  than  those  specified 
in  section  5  of  this  agreement,  including  disagree- 
ments arising  in  negotiations  for  a  new  scale  of 


APPENDIX  vii 

wages,  or  for  hours  of  labor,  or  In  renewing  or  ex- 
tending an  existing  scale,  or  in  respect  to  a  contract, 
which  can  not  be  settled  by  conciliation,  shall  be 
referred  to  a  local  board  of  arbitration  in  the  man- 
ner stipulated  in  the  Code  of  Procedure  as  set  forth 
in  Exhibit  "B." 

Sec.  7.  The  question  whether  a  department  shall 
be  union  or  non-union  shall  not  be  classed  as  a  "dif- 
ference" to  be  arbitrated.  Union  departments  shall 
be  understood  to  mean  such  as  are  made  up  of  union 
employees  and  in  which  the  union  has  been  formally 
recognized  by  the  employer. 

Sec.  8.  If  either  party  to  a  local  arbitration  shall 
be  dissatisfied  with  a  decision  by  a  local  board  ap- 
peal may  be  taken  to  the  International  Board  of 
Arbitration  to  be  constituted  as  hereinafter  pro- 
vided. Such  appeal  may  also  be  taken  to  the  Inter- 
national Board  by  either  party  If  for  any  cause  a 
decision  shall  not  have  been  rendered  by  a  local 
board  within  ninety  days  after  the  questions  to  be 
arbitrated  have  been  duly  determined  under  the 
Code  of  Procedure. 

Sec.  9.  Local  union  laws  not  affecting  wages, 
hours  and  working  conditions  and  the  laws  of  the 
International    Typographical    Union    shall    not   be 


vlli  APPENDIX 

subject  to  the  provisions  of  this  arbitration  agree- 
ment :  provided,  that  International  or  local  laws 
enacted  subsequent  to  the  execution  of  an  individual 
arbitration  or  local  contract  shall  not  affect  either 
contract  during  its  life. 

Sec.  10.  The  International  Board  of  Arbitration 
shall  consist  of  the  three  members  of  the  executive 
council  of  the  International  Typographical  Union 
and  the  three  members  of  the  Special  Standing 
Committee  of  the  American  Newspaper  Publishers' 
Association,  or  their  proxies.  This  board  shall  meet 
at  such  time  and  place  as  may  be  determined  by  it. 
Due  notice  of  time  and  place  of  meeting  of  the  In- 
ternational Board  shall  be  given  all  interested  par- 
ties. If  the  board  as  thus  constituted  Is  unable  after 
considering  a  case  at  two  meetings,  to  reach  a  deci- 
sion, the  membership  of  the  board  may  be  increased, 
by  unanimous  vote,  by  the  addition  of  a  seventh  and 
disinterested  member,  who  shall  act  only  on  the 
matters  that  made  his  selection  necessary,  and  who 
shall  have  the  same  standing  as  the  other  members, 
and  shall  act  with  them  at  the  earliest  possible  date 
after  his  appointment. 

Sec.  II.  The  award  of  the  International  Board 
of  Arbitration  in  all  cases  shall  include  a  determina- 


APPENDIX  ix 

tlon  of  all  the  issues  involved ;  it  shall  cover  the  full 
period  between  the  raising  of  the  issues  and  their 
final  settlement;  any  change  in  the  wage  scale  may 
be  made  effective  from  the  date  the  issue  first  arose 
at  the  discretion  of  the  board.  An  award  by  a  ma- 
jority of  the  International  Board  shall  be  final,  and 
shall  be  accepted  as  such  by  the  parties  to  the 
dispute. 

Sec.  12.  At  the  request  of  either  party  to  an 
arbitration  the  International  Board  shall  determine 
whether  evasion,  collusion  or  fraud,  has  character- 
ized either  the  local,  or  international  proceedings,  or 
whether  either  party  has  failed  to  comply  with,  or 
refuses  to  fulfill  its  obligations  under  a  decision, 
or  has  omitted  to  perform  any  duty  prescribed 
therein,  or  has  secured  any  unfair  or  fraudulent  ad- 
vantage, or  has  evaded  any  provision  of  this  agree- 
ment or  any  rule  of  the  Code  of  Procedure,  or  is  not 
acting  in  good  faith.  At  the  conclusion  of  such  in- 
quiry it  shall  be  wholly  within  the  power  of  the 
International  Board  to  reject  all  that  has  been  pre- 
viously done  and  order  a  rehearing  before  the  Inter- 
national Board  or  before  a  new  local  board ;  or  it 
may  find  against  the  offending  party  or  annul  the 
individual   arbitration   contract.      In   the   event   of 


X  APPENDIX 

either  party  to  a  dispute  refusing  to  accept  and 
comply  with  a  decision  of  a  local  board  which  is  not 
appealed,  or  with  a  decision  of  the  International 
Board,  or  with  any  of  the  provisions  of  this  Interna- 
tional Arbitration  Agreement,  as  determined  by  a 
decision  of  the  International  Board,  all  aid  and  sup- 
port to  the  employer  or  the  local  union  refusing  ac- 
ceptance and  compliance  shall  be  withdrawn  by  both 
parties  to  this  agreement.  The  acts  of  such  recalci- 
trant employer  or  union  shall  be  publicly  disavowed 
and  the  aggrieved  party  shall  be  furnished  by  the 
other  with  an  official  document  to  that  effect. 

Sec.  13.  The  form  of  Individual  Arbitration 
Contract  set  forth  in  Exhibit  "A"  and  the  Code  of 
Procedure  set  forth  in  Exhibit  "B"  are  hereby  made 
a  part  of  this  agreement  and  shall  be  as  binding  on 
the  parties  hereto  as  if  the  same  were  set  forth  at 
length  herein. 

Sec.  14.  This  agreement  shall  remain  in  effect 
from  the  1st  day  of  May,  191 2,  to  the  30th  day  of 
April,  191 7,  inclusive,  but  amendments  may  be  pro- 
posed at  any  meeting  of  the  International  Board  of 
Arbitration  by  either  party  hereto,  and  on  accept- 
ance by  the  other  party  to  this  agreement  shall  be- 
come a  part  hereof. 


APPENDIX  xl 

In  witness  whereof,  the  undersigned  have  affixed 
their  respective  signatures  in  quadruplicate  this  I  ith 
day  of  January,  1912. 

H.  N.  Kellogg, 
Charles  H.  Taylor,  Jr., 
George  C.  Hitt, 
Special  Standing  Committee  American  News- 
paper Publishers'  Association. 

James  M.  Lynch, 
Hugo  Miller, 
John  W.  Hays, 
Executive  Council  International  Typographical 

Union. 

EXHIBIT  a 

Individual  Arbitration  Contract 

It  is  agreed  between proprietor  of  the 

party  of  the  first  part  and 

Union  No ,  of party  of  the  second 

part,  by  its  president  duly  authorized  to  act  in  its 
behalf  as  follows : 

Section  i.  In  the  event  of  any  difference  arising 
between  the  parties  to  this  contract  which  can  not  be 
adjusted  by  conciliation,  such  difference  shall  be 
submitted  to  arbitration  under  the  Code  of  Pro- 
cedure provided  by  the  International  Arbitration 
Agreement,    effective    May    i,    191 2,    between    the 


xii  APPENDIX 

American  Newspaper  Publishers'  Association  and 
the  International  Typographical  Union. 

Sec.  2.  This  contract  shall  cover  any  contract 
between  the  parties  of  the  first  and  second  parts 
whether  the  same  is  in  writing  or  an  oral  under- 
standing, subject  to  the  conditions  expressed  in  the 
International  Arbitration  Agreement,  effective  May 
I,  191 2,  between  the  American  Newspaper  Publish- 
ers' Association  and  the  International  Typographical 
Union. 

Sec.  3.  It  is  expressly  understood  and  agreed 
that  the  International  Arbitration  Agreement  and 
the  Code  of  Procedure,  both  hereunto  attached,  be- 
tween the  American  Newspaper  Publishers'  Associa- 
tion and  the  International  Typographical  Union, 
shall  be  integral  parts  of  this  contract  and  shall  have 
the  same  force  and  effect  as  though  set  forth  in  the 
contract  itself. 

Sec.  4.  The  parties  hereto  specifically  authorize 
the  Executive  Council  of  the  International  Typo- 
graphical Union  and  the  Special  Standing  Com- 
mittee of  the  American  Newspaper  Publishers' 
Association  to  give  public  disavowal  to  any  failure 
to  comply  with  this  contract  as  provided  in  section 
12  of  the  International  Arbitration  Agreement. 

This  contract  shall  be  in  full  force  and  effect  on 


APPENDIX  xHi 

the day  of ,  19.  .  .  .,  and  continue 

until  the  30th  day  of  April,  191  7,  inclusive. 

In   witness  whereof  the   undersigned  proprietor 
of   the   said   newspaper,    and   the   president   of   the 

Union   No have   hereunto   affixed 

their  respective  signatures  this  ....  day  of , 

I9-.  


,,j.  -r,         .  Proprietor. 

Witness  as  to  Proprietor: 


President Union  No. 

Witness  as  to  President : 


Secretary Union  No 

The  American  Newspaper  Publishers'  Associa- 
tion, by  the  chairman  of  its  special  standing  com- 
mittee, duly  authorized  to  act  in  its  behalf,  hereby 
underwrites  the  obligations  assumed  by  the  party  of 
the  first  part  under  this  agreement,  and  guarantees 
their  fulfillment. 


Chairman  Special  Standing  Committee  Ameri- 
can Newspaper  Publishers'  Association. 
Witness  as  to  Chairman  : 


xlv  APPENDIX 

The  International  Typographical  Union  by  its 
president,  duly  authorized  to  act  in  its  behalf,  hereby 
underwrites  the  obligations  assumed  by  the  party  of 
the  second  part  under  this  agreement,  and  guaran- 
tees their  fulfillment. 


President  International  Typographical  Union. 
Witness  as  to  President: 


EXHIBIT   B 

,  Code  of  Procedure 

Section  i.  If  a  publisher  holding  an  Individual 
Arbitration  Contract  under  the  prior  agreement  be- 
tween the  parties  hereto,  which  terminates  May  i, 
191 2,  desires  to  secure  continuous  protection,  he  shall 
not  later  than  March  i,  191 2,  notify  the  president  of 
the  union  operating  in  the  department  he  wishes  the 
contract  to  cover  of  his  desire  to  secure  an  Individ- 
ual Arbitration  Contract  to  be  effective  from  May  i, 
1 9 1 2,  to  April  30,  1 9 1 7,  inclusive.  If  the  issuance  of 
an  Individual  Arbitration  Contract  as  above  is  sat- 
isfactory to  the  said  union  the  parties  shall  execute 
in  quadruplicate  an  Individual  Arbitration  Contract, 
as  set  forth  in  Exhibit  "A,"  before  May  i,   1912. 


APPENDIX  XV 

Publishers  of  this  class  securing  Individual  Arbitra- 
tion Contracts  effective  from  May  i,  1912,  until 
April  30,  191 7,  inclusive,  shall  have  continuous  pro- 
tection for  the  departments  to  which  said  Individual 
Arbitration  Contracts  apply. 

Sec.  2.  If  a  publisher  shall  not  have  had  an  In- 
dividual Arbitration  Contract  of  date  prior  to  May 
I,  1912,  but  shall  have  secured  a  contract  on  that 
or  some  date  subsequent  thereto,  this  Code  of  Pro- 
cedure shall  apply  to  all  differences  between  such 
publisher  and  the  union  covered  by  the  Individual 
Arbitration  Contract,  which  arise  after  sixty  (60) 
days  shall  have  elapsed  from  the  date  of  signing  the 
said  contract.  No  new  issue  shall  be  raised  by  either 
party  until  at  least  sixty  (60)  days  shall  have 
elapsed  from  the  date  of  signing  the  said  contract. 
A  publisher  desiring  an  Individual  Arbitration  Con- 
tract shall  notify  the  president  of  the  union  operating 
in  the  department  he  wishes  the  contract  to  cover,  of 
his  desire  to  secure  an  Individual  Arbitration  Con- 
tract to  be  effective  until  April  30,  191 7,  Inclusive. 
If  the  issuance  of  an  Individual  Arbitration  Con- 
tract as  above  set  forth  is  satisfactory  to  said  union, 
the  parties  shall  execute  in  quadruplicate  an  Indi- 
vidual Arbitration  Contract  as  set  forth  in  Ex- 
hibit "A." 


xvi  APPENDIX 

Sec.  3.  If  there  are  pending  any  issues  (a  new 
scale  of  prices,  a  change  of  scale  or  contract,  or  dif- 
ferences of  any  nature)  between  a  publisher  to  whom 
the  conditions  apply  as  set  forth  in  section  2  of  this 
code,  and  the  union  with  which  he  wishes  to  make  an 
Individual  Arbitration  Contract,  of  which  issues  no- 
tice in  writing  has  been  given  within  sixty  (60) 
days  of  the  date  of  the  notice  by  the  publisher  of  his 
desire  to  obtain  an  Individual  Arbitration  Contract 
as  provided  in  section  2  of  this  code,  all  such  issues 
shall  be  exempt  from  arbitration.  A  certificate  set- 
ting forth  the  pending  issues  shall  be  executed  in 
quadruplicate,  signed  by  the  publisher  and  the  pres- 
ident of  the  union,  and  one  copy  of  the  certificate 
shall  be  attached  to  each  copy  of  the  Individual 
Arbitration  Contract. 

Sec.  4.  An  issue  is  raised  at  the  time  a  written 
request  is  made  by  either  party  presenting  in  detail 
changes  in  conditions  desired. 

Local  Arbitration 

Sec.  5.  The  two  parties  in  interest  must  have  a 
conference  as  soon  as  possible  and  not  later  than 
sixty  (60)  days  after  an  issue  is  raised,  at  which 
conference  (or  continuation  thereof)  every  effort  to 
agree  shall  be  made.     The  party  upon  whom  the 


APPENDIX  xvll 

original  demand  is  made  may  present  a  counter 
proposition,  provided  it  be  submitted  in  writing  and 
in  detail,  which  counter  proposition  shall  be  sub- 
mitted as  soon  as  possible,  and  in  any  event  within 
the  same  period  of  sixty  (60)  days. 

Sec.  6.  Upon  failure  to  agree,  each  party  shall 
prepare  its  statement,  embracing  the  conditions  that 
it  seeks  to  establish.  Each  statement  must  be  com- 
plete in  itself,  and  copies  thereof  shall  be  forwarded 
to  the  chairman  of  the  Special  Standing  Committee 
of  the  Am^erican  Newspaper  Publishers'  Association 
and  the  president  of  the  International  Typograph- 
ical Union,  accompanied  by  a  letter  of  transmittal, 
to  be  signed  jointly  by  the  parties  in  Interest,  certi- 
fying that  they  are  acquainted  with  the  contents  of 
both  statements.  The  chairman  and  president  shall 
thereupon  determine  the  questions  or  subjects  which 
can  be  properly  submitted  to  arbitration,  and  shall 
promptly  notify  by  joint  letters  the  interested  parties 
of  their  decision.  In  case  the  two  officials  can  not 
agree,  their  differences  shall  be  submitted  to  the  In- 
ternational Board  of  Arbitration. 

Sec.  7.  After  the  questions  to  be  arbitrated  have 
been  determined  a  Local  Board  of  Arbitration  must 
be  formed  composed  of  residents  of  the  locality  in 
which  the  controversy  arises,  two  members  thereof 


xvlii  APPENDIX 

to  be  named  by  each  side,  one  such  representative  of 
each  contending  party  to  be  free  from  personal  con- 
nection with  or  direct  interest  in  any  newspaper  or 
any  labor  union.  The  board  as  thus  constituted  shall 
select  a  secretary  from  among  its  members.  The 
four  members  of  the  board  shall  then  choose  an  ad- 
ditional member,  who  shall  be  a  disinterested  party, 
and  shall  act  as  chairman  of  the  board.  If  the  chair- 
man of  the  local  board  shall  not  have  been  selected 
within  thirty  (30)  days  after  the  questions  to  be 
arbitrated  have  been  determined,  he  shall  be  named 
by  the  chairman  of  the  Special  Standing  Committee 
of  the  American  Newspaper  Publishers'  Association 
and  the  president  of  the  International  Typograph- 
ical Union,  or  their  proxies,  upon  the  request  of 
either  of  the  interested  parties.  The  two  officials 
named,  or  their  proxies,  may  for  this  purpose  visit 
the  locality  if  they  deem  it  necessary.  Any  expense 
thus  incurred  shall  be  defrayed  equally  by  the  par- 
ties to  the  controversy.  The  chairman  of  the  local 
board  shall  preside,  put  motions,  etc.,  and  shall  be 
entitled  to  vote  on  all  propositions  which  may  prop- 
erly come  before  the  board  in  open  session.  He 
shall  declare  a  motion  carried  only  when  at  least 
three  of  the  arbitrators  shall  have  voted  affirmatively 
thereon.    At  the  conclusion  of  the  hearing  the  chair- 


APPENDIX  xix 

man  shall  retire  and  the  other  members  of  the  board 
shall  go  into  executive  session  and  immediately  take 
up  a  consideration  of  the  issues  involved.  If  in  ex- 
ecutive session  a  tie  vote  occurs  on  any  proposition, 
or  if  there  are  any  differences,  questions  or  proposi- 
tions which  do  not  receive  the  votes  of  three  of  the 
four  original  members  of  the  board,  the  chairman 
shall  be  called  in  to  cast  the  deciding  votes  on  all 
unsettled  questions  or  propositions. 

Sec.  8.  After  the  Local  Board  of  Arbitration  has 
been  organized  it  shall  proceed  forthwith  to  conduct 
its  hearings  under  the  following  rules : 

1.  It  may  demand  duplicate  typewritten 
statements  of  grievances. 

2.  It  may  examine  all  parties  involved  in 
any  differences  referred  to  it  for  adjudication. 

3.  It  shall  employ  such  stenographers,  etc., 
as  may  be  necessary  to  facilitate  business,  and 
to  provide  a  record  for  use  in  the  event  of  an 
appeal,  said  record  to  be  properly  paged  and 
indexed. 

4.  It  may  require  affidavits  on  all  disputed 
points. 

5.  It  shall  have  free  access  to  all  books  and 
records  bearing  on  points  at  issue. 


XX  APPENDIX 

6.  Equal  opportunity  shall  be  allowed  for 
presentation  of  evidence  and  argument. 

7.  In  event  of  either  party  to  the  dispute  re- 
fusing to  appear  or  present  its  case  after  due 
notice,  it  may  be  adjudged  in  default,  and  deci- 
sion shall  then  be  rendered  against  such  party. 

8.  All  evidence  communicated  to  the  board 
in  confidence  shall  be  preserved  inviolate  and 
no  record  of  such  evidence  shall  be  kept,  except 
for  use  on  appeal,  in  which  case  such  inviola- 
bility shall  be  preserved. 

9.  The  party  making  the  original  demand 
shall  have  the  right  to  present  its  case  and  evi- 
dence without  interruption,  excepting  that  when 
oral  evidence  is  introduced  cross-examination 
of  witnesses  shall  be  allowed.  The  opposing 
party  shall  have  the  same  right  in  turn.  The 
first  party  shall  then  have  the  right  to  present 
evidence  strictly  in  rebuttal  and  the  opposing 
party  shall  be  allowed  to  present  counter  evi- 
dence strictly  in  surrebuttal.  When  objection  is 
made  by  either  party  to  the  admission  of  any 
evidence  offered  by  the  other  party,  the  board 
by  vote  shall  decide  as  to  the  admissability  of 
the  evidence  in  question. 


APPENDIX  xxi 

10.  In  case  of  the  inability  of  either  side  to 
present  evidence  at  the  moment,  the  order  may 
be  varied  to  the  extent  of  allowing  such  evi- 
dence to  be  presented  at  such  session  as  may  be 
agreed  upon  by  the  parties  to  the  controversy, 
or  as  may  be  ordered  by  the  Local  Board  of 
Arbitration.  No  evidence  shall  be  received  or 
considered  that  was  not  presented  at  a  regular 
open  session  of  the  board,  except  that  it  shall 
be  allowable  for  the  members  of  the  board,  in 
any  case,  to  visit  any  office  to  see  the  operation 
of  labor  therein,  or  for  any  other  necessary 
purpose,  to  aid  in  arriving  at  a  just  decision. 

11.  Oral  arguments  may  be  limited  to  one 
speech  on  each  side,  after  all  evidence  has  been 
presented.  Written  pleadings,  instead  of  oral 
arguments,  shall  be  allowed  whenever  agreed 
upon  by  the  parties  to  the  controversy,  or  when- 
ever ordered  by  the  Local  Board  of  Arbitration, 

12.  There  shall  be  an  agreement  by  at  least 
a  majority  of  the  members  of  the  board  as  to 
the  exact  time  and  place  of  hearing,  of  which 
both  parties  shall  be  notified  in  season.  The 
session  shall  be  continuous,  except  for  necessary 
intermissions,  until  the  hearing  is  concluded. 

Sec.  9.    When  a  hearing  is  concluded  the  board 


xxii  APPENDIX 

shall,  without  unnecessary  delay,  and  as  set  forth  In 
section  7  of  this  code,  go  into  executive  session,  from 
which  all  persons  except  the  four  original  members 
of  the  board  shall  be  excluded,  for  the  determination 
of  its  award.  In  its  deliberation  the  transcript  of 
the  stenographic  report  shall  be  accepted  as  the  best 
evidence  of  what  occurred  at  the  hearing,  unless  it 
be  shown  that  gross  errors  exist  in  said  transcript. 
Should  the  four  members  be  unable  to  decide  upon 
the  award  the  chairman  shall  be  called  in,  as  pro- 
vided in  section  7  of  this  code.  The  award  of  the 
board  must  be  formulated  and  signed  by  all  of  the 
members  thereof  at  a  regular  executive  session,  after 
there  has  been  full  opportunity  for  consideration  and 
discussion,  the  date  and  time  of  such  session  having 
previously  been  determined  at  a  full  meeting  of  the 
local  board.  If  any  member  of  the  local  board  dis- 
sents from  the  award,  and  wishes  to  file  a  dissenting 
opinion,  he  shall  give  Immediate  notice  to  that  effect, 
and  shall,  within  forty-eight  (48)  hours  after  the 
award  has  been  decided  upon,  and  before  it  has  been 
promulgated,  formulate  his  reasons  for  dissenting, 
and  such  opinion  must  be  signed  by  him  before  final 
adjournment  at  a  regular  executive  session,  arranged 
for  as  above  provided.  Such  dissenting  opinion, 
when  thus  signed,  must  be  attached  to  the  award. 


APPENDIX  xxIII 

Sec.  10.  The  local  board  shall  not  be  compelled 
to  set  forth  its  reasons  for  making  the  award,  but 
may  do  so  in  the  written  award  only.  In  framing 
its  award  the  findings  shall  be  expressed  in  detail,  to 
the  end  that  no  misunderstanding  shall  afterward 
occur.  An  award  of  a  local  board  shall  be  for  at 
least  one  year,  but  a  local  board  may  provide  that  its 
award  shall  be  effective  for  a  longer  period,  not  to 
exceed  three  years;  provided  there  is  no  local  agree- 
ment as  to  time. 

Sec.  II.  All  expenses  of  a  Local  Arbitration 
Board  shall  be  divided  equally  between  the  union 
and  the  other  interested  party  or  parties. 

National  Arbitration 

Sec.  12.  When  either  party  to  a  local  arbitration 
shall  desire  to  appeal  to  the  International  Board 
written  notice  to  that  effect  must  be  given  to  the  other 
party  within  five  (5)  days  after  the  local  decision 
has  been  rendered,  and  the  appeal  shall  be  filed  with 
the  International  Board  within  thirty  (30)  days 
after  such  decision.  When  an  appeal  is  under  con- 
sideration by  the  International  Board  of  Arbitration 
it  shall  not  take  evidence,  but  both  parties  to  the 
controversy  may  appear  personally  or  may  submit 
the  records  and  briefs  of  the  local  hearings  and  make 


xxiv  APPENDIX 

oral  or  written  arguments  in  support  of  their  several 
contentions.  They  may  submit  an  agreed  statement 
of  facts,  or  a  transcript  of  testimony,  properly  certi- 
fied to  before  a  notary  public  by  the  stenographer 
taking  the  original  evidence  or  depositions. 

Sec.  13.  The  International  Board  of  Arbitration 
must  act  when  its  services  are  desired  by  either  party 
to  an  appeal  as  above  and  shall  proceed  with  all  pos- 
sible dispatch  in  rendering  such  services. 

Sec.  14.  So  far  as  applicable  the  rules  of  pro- 
cedure governing  Local  Arbitration  Boards  shall 
govern  the  International  Board  of  Arbitration. 

Sec.  15.  Should  either  party  to  a  local  or  Inter- 
national arbitration  desire  to  make  an  allegation 
against  the  other  as  provided  in  section  12  of  the 
International  Arbitration  Agreement,  the  complaint 
shall  be  prepared  in  writing  and  in  quadruplicate. 
A  copy  thereof  shall  be  delivered  by  registered  mail 
to  the  chairman  of  the  Special  Standing  Committee 
of  the  American  Newspaper  Publishers'  Association, 
to  the  president  of  the  International  Typographical 
Union,  and  to  the  party  against  whom  the  complaint 
is  made. 

Sec.  16.  All  awards  of  the  International  Arbi- 
tration Board,  excepting  those  made  under  section  5 
of  the  International  Arbitration  Agreement,  shall  be 


APPENDIX  XXV 

for  at  least  one  year,  but  the  International  Arbitra- 
tion Board  may  provide  that  its  awards  shall  be 
effective  for  a  longer  period,  not  to  exceed  three 
years;  provided  there  is  no  local  agreement  as  to 
time. 

Sec.  17.  All  expenses  attendant  upon  the  settle- 
ment of  any  case  before  the  International  Board 
shall  be  adjusted  in  each  case  in  accordance  with  the 
directions  of  the  International  Board  of  Arbitration. 

Sec.  18.  These  rules  and  this  code  may  be 
amended  at  any  meeting  of  the  International  Arbi- 
tration Board  in  accordance  with  the  method  pre- 
scribed in  section  14  of  the  International  Arbitration 
Agreement. 


INDEX 


INDEX 

Accidents  in  industry :  98 ;  in  Colorado  coal  mines,  296. 

Adjustment  to  changed  conditions,  350. 

Agreements:   trade  commended,  311;  mutual,  326. 

Agriculture :  in  Australia,  150 ;  in  Canada,  174 ;  in  Germany, 
28;  in  New  Zealand,  124;  New  Zealand  and  United 
States  compared,  124,  125. 

Alabama:  award  not  binding,  236;  duty  of  board  before  arbi- 
tration, 224;  law  enacted,  261;  local  boards  of  arbitra- 
tion, 217;  recommendations  of  board  filed,  236. 

Alberta,  coal  strike  in,  182. 

Amalgamated  German  Unions,  304. 

American  Federation  of  Labor :  attitude  toward  Canadian 
act,  186 ;  attitude  toward  compulsory  arbitration,  205- 
208 ;  growth  of,  300 ;  in  politics,  305 ;  referred  to,  309, 
310. 

Anthracite  coal  strike:  investigation  of,  268,  284;  agreement 
effected,  308 ;  disturbances  of  1912,  285 ;  present  ar- 
rangement, 285. 

Anthracite  coal  strike  commission,  work  of,  285. 

Anti-combination  law  of  1799,  28. 

Appendix,  iii. 

Arbitration :  awards  of  boards  in  United  States,  235-238 ; 
awards,  when  binding,  75 ;  attempts  at  in  United  States 
coal  fields,  196;  Australia,  laws  of,  154,  155,  157-164; 
Australia,  operation  of  laws,  146-166 ;  Canada,  167-190 ; 
French  act  of  1909,  112,  113;  beginnings  of  in  France, 
87;  French  law  of  1892,  100-107;  results  of  in  France, 
101-107 ;  Germany,  agreements  in,  81 ;  appeal  to  in  Ger- 
many, Id ;  applications  for  in  Germany,  81 ;  Berlin 
court  of,  75 ;  principles  of  inaugurated,  in  Germany, 
34;  results  of  in  Germany,  81;  New  Zealand,  118-145, 
346;  act  of  1894  in  New  Zealand,  138,  139;  compulsory 
in  New  Zealand,  119,  125,  126,  137;  consoHdated  act 
copied,  145 ;  consolidated  act  of  1908  in  New  Zealand, 
145;  results  of  in  New  Zealand,  120,  143;  United  States, 
191-214,  215-238,  239-267,  268-287;  attempts  at  in 
United  States,  196;  defects  of  system  in  United  States, 
261 ;  compulsory  in  United  States,  274 ;  discussed,  345 ; 
failure  of  in  United  States,  321,  326;  first  instances  of 
in  United  States,  192-194 ;  first  legislative  acts  in  United 


XXX  INDEX 

Arbitration — Continued. 

States,  196,  197;  interstate  act  of  1888,  274;  interstate 
act  of  1898,  281 ;  success  of,  281 ;  interstate  act  of  1913, 
285;  Industrial  Workers  of  the  World,  attitude  of,  208; 
Knights  of  Labor,  attitude  of,  195 ;  political  parties, 
attitude  of,  213,  214;  Socialists,  attitude  of,  208;  poli- 
tics, effect  of  in  United  States,  255 ;  public,  interest  of, 
346;  summary  of  legislation,  197;  success  of  laws  in 
five  states,  241-246;  two  forms  of  legislation,  198,  199. 

Arbitration  and  conciliation  (see  Arbitration). 

Artisans,  associations  of  make  appearance,  23. 

Askwith,  Sir  George,  quoted,  184-186. 

Auckland,  120. 

Australia:  agriculture,  150;  arbitration,  154,  155,  157-164; 
cities,  population  of,  151;  compulsory  arbitration,  146; 
commonwealth  act,  147-162 ;  education,  152,  153 ;  home- 
steads, 148;  hours  of  labor,  156;  Hatch,  Leonard  W., 
quoted,  158;  immigration,  151;  industrial  conditions, 
153 ;  Industrial  Workers  of  the  World,  165 ;  living 
wage,  147,  157 ;  manufacturers,  149 ;  minerals,  149,  150 ; 
military  training,  164;  occupations,  151;  old  age  pen- 
sions, 151;  population,  147,  151;  railroads,  165;  wages 
boards  of  South  Australia,  147 ;  savings  banks  deposits, 
165 ;  Socialists,  165 ;  strikes,  157,  160-162 ;  taxation,  152 ; 
trade  unions,  157;  United  States  and  Australia  com- 
pared as  to  land  problem,  148-149;  workers'  welfare, 
146;  wages  boards,  155,  157,  159,  162,  164;  Weinstock, 
Harris,  quoted,  156. 

Austria,  France  joined  in  war  with,  98. 

Austria-Hungary,  immigration  from  to  New  Zealand,  122. 

Bakers,  strike  of  in  1741,  191. 

Baltimore,  120. 

Bank  deposits,  in  New  Zealand,  144. 

Belgium,  immigration  from  to  New  Zealand,  122. 

Birmingham,  rents  in,  335. 

Bituminous  coal  miners,  agreement  of,  308. 

Blanc,  Louis,  referred  to,  94. 

Board  of  Trade :  disputes  settled  by  in  England,  41-43 ;  re- 
port on  housing,  342 ;  quoted,  343. 

Boot  and  Shoe  Workers,  trade  agreement  of,  312,  314. 

Boston:  referred  to,  120;  elevated  strike  in,  228;  longshore- 
men, strike  of,  245;  street  railway,  strike  on,  245. 

Bourbons,  and  working  classes  in  France,  89. 

Bourses  du  travail,  99,  108. 

Boycott,  blacklist  and  picket,  19. 

Brandeis,  Louis,  quoted,  340. 

Brewers,  agreement  of,  308. 

Brewster,  Professor  J.  H.,  discussed,  297, 


INDEX  xxxl 

Briand,  M.,  resigned  during  railway  strike,  112. 

Bricklayers,  Masons  and  Plasterers:  conditions  of  strike,  310; 

referred  to,  327. 
Bricklayers'  Union,  304. 
Brickmakers,  strike  of  in  1843,  192. 
British  Citizens'  Industrial  Association,  212. 
Brotherhood  of  Locomotive  Firemen  and  Enginemen :    309; 

of  Locomotive  Engineers,  309;  of  Railway  Trainmen, 

309. 
Bruce,  Tolin  W.,  quoted,  187,  188. 
Buffalo,  referred  to,  120. 

Builders'  Association  of  New  York  City,  304. 
Bureau  of  Labor :   report  cited,  239 ;  created,  272 ;  tables,  248. 
Byron,  Lord,  denounces  act  of  Parliament,  26. 

Cabot,  referred  to,  94. 

California :  award  of  arbitration  board,  235 ;  board  quoted, 
252;  investigations  of  board,  232;  creation  of  board, 
251 ;  minimum  wage  law,  339 ;  provisions  for  arbitration, 
225. 

Calumet  copper  strike,  referred  to,  287,  331. 

Canada :  area  compared  to  United  States,  168 ;  agriculture, 
174;  industrial  disputes  act,  text  of,  177-181;  copied  in 
New  Zealand,  145;  discussion,  167,  176;  not  adapted  to 
conditions  in  United  States,  348;  results  of  operation, 
168,  181-184 ;  criticisms  of,  184 ;  education,  175 ;  immi- 
gration, 170-172;  land  question,  169;  lumber  industry, 
174;  manufacturers,  173;  minerals,  174;  occupations, 
174;  population,  compared  to  United  States,  168;  public 
debt,  176;  railways,  174;  strikes,  181-183;  trade,  175; 
wages,  173. 

Canadian  Pacific,  strike  of,  182. 

Capital,  combinations  of,  13. 

Carpenters,  union  of  referred  to,  327. 

Chicago:  population  of,  120;  street  railway  strike  in,  299. 

Child  labor :  in  France,  93,  98 ;  in  England,  29,  30. 

China,  expedition  against,  97. 

Chinese,  in  New  Zealand,  122. 

Cincinnati,  referred  to,  120. 

Cities :  of  New  Zealand,  120,  121 ;  government  of,  121 ;  of 
Australia,  151;  growth  of  generally,  330. 

Citizens'  Industrial  Association,  211,  212. 

Clay,  Sir  Arthur,  quoted,  114. 

Cleveland :  referred  to,  121 ;  rents  in,  335 ;  President  of 
United  States,  message  quoted,  270-272;  approved  act 
of  1888,  274. 

Cloakmakers,  strike  of,  246,  307,  308. 

Coalitions,  in  France,  97. 


xxxli  INDEX 

Coal  mining,  workmen  employed  in  New  Zealand,  124. 

Coal  strikes,  in  Germany,  85. 

Collective  bargaining:  14,  349;  principle  of  recognized  in 
Germany,  7i. 

Colorado:  awards  of  arbitration  boards,  236;  investigations 
of  disputes,  227,  229,  231 ;  legislation  ineffective,  265 ; 
local  boards,  218;  minimum  wage  law,  339;  provisions 
for  mediation,  225. 

Colorado  coal  strike:  absence  of  law  and  order,  293;  acci- 
dents in  mines,  no  remedy,  296 ;  Colorado  Fuel  and  Iron 
Company,  referred  to,  288;  Industrial  Relations  Com- 
mission, investigations  of,  290;  Lindsay,  testimony  of 
Judge  Ben.  B.,  295;  quoted,  298;  Ludlow,  battle  of, 
294;  mine  guards,  294;  Nearing,  Professor  Scott,  re- 
ferred to,  298 ;  National  Guard,  character  of,  294 ;  po- 
litical conditions,  297;  Trinidad  convention,  288,  289; 
United  Mine  Workers,  campaign  of,  288;  recognition 
demanded,  290 ;  denied,  291 ;  character  of,  291 ;  strikers 
imported,  292 ;  violence,  294. 

Commons,  John  R.,  quoted,  26. 

Commonwealth  act,  on  Australia,  147,  162. 

Compulsory  arbitration :  in  New  South  Wales,  146,  147 ;  not 
now  expedient,  348-350. 

Conciliation  and  arbitration:  outlined,  20;  also  see  Arbitra- 
tion. 

Confederation  Gencrale  du  Travail,  107,  109,  110. 

Connecticut :  failure  of  state  board,  247 ;  housing  law,  344 ; 
investigations  by  arbitration  board,  231 ;  no  provisions 
for  binding  award,  236;  provisions  for  mediation,  225; 
report  of  board  quoted,  247. 

Constitution,  limitations  of,  347. 

Constitution  of  1793,  in  France. 

Continuation  schools,  German,  63. 

Cooperation,  in  France,  95. 

"Council  of  Conciliation  act,"  British,  36. 

Craft  guilds,  23,  87. 

Crimean  war,  97. 

Debt,  increase  in  New  Zealand  explained,  144. 

Democratic  party,  opposition  on  industrial  arbitration,  214. 

Denmark,  immigration  from  to  New  Zealand,  122. 

Detroit,  121. 

Devices  in  operation,  239-267. 

Director  of  seamen's  register,  113. 

Drunkenness,  in  New  Zealand,  134,  135. 

Eaves,  quoted,  251. 


INDEX  xxxiil 

Education :  compulsory  in  France,  94 ;  the  German  system, 
63,  64;  immigration  test  in  New  Zealand,  122;  in  Aus- 
tralia, 152,  153;  in  Canada,  175;  vocational,  328,  339. 

Electorate,  increase  of,  94. 

Elements  of  problem,  1-21. 

Emery,  J.  A.,  referred  to,  212. 

Enfantin,  94. 

England,  industrial  revolution  in,  83. 

English,  experiments  with  conciliation,  22. 

Erdman  act,  279-283. 

Expert  assistance,  used  by  state  boards,  232-235. 

Expressmen,  strike  of,  246. 

Factories,  330. 

Factories  act  of  New  Zealand,  128-130. 

Federated  trade  councils  of  San  Francisco,  252. 

Fielding,  inaugurates  ten-hour  day,  33. 

Ford,  Henry,  referred  to,  324. 

Forests,  disappearance  of,  330. 

Forty-ninth  Congress,  referred  to,  272. 

Fox,  Martin,  quoted,  255. 

France:  accidents  in  industry,  98;  arbitration  and  concilia- 
tion, 87-92,  100-107;  act  of  1909,  112,  113;  beginnings 
of  arbitration  and  conciliation,  87 ;  counseils  des 
Prud'hommes,  87,  88,  100;  Bourbons,  and  working 
classes,  89;  bourses  du  travail,  99,  108;  Briand,  M., 
resigns  during  strike,  112;  Confederation  Generale  du 
Travail,  107,  109,  110;  Crimean  war,  97;  French  society, 
character  of,  88,  89 ;  child  labor,  93 ;  cooperation,  95 ; 
coalitions,  97;  director  of  seamen's  register,  113;  edu- 
cation, compulsory,  94 ;  electorate,  increase  of,  94 ;  fed- 
eration of  civil  servants.  111 ;  Franco-Prussian  War,  98; 
general  strike,  108,  111;  Gompers,  referred  to,  114; 
immigration  from  to  New  Zealand,  122 ;  intellectual 
revolution  in,  83 ;  indemnity  act,  extended  to  agricul- 
ture, 99 ;  industry,  89-98 ;  associations  and  meetings, 
law  against,  93;  international  labor  congress,  108;  ju- 
dicial aid,  free,  97;  Limoges,  congress  of  trade  union- 
ists at,  106 ;  Lyons  and  silk  industry,  87 ;  labor  unions, 
99,  100,  109 ;  medical  aid,  free,  98 ;  miners,  superannua- 
tion fund  of,  98 ;  Millerand,  state  employees  and  labor 
unions,  109;  Napoleon  I,  87;  national  workshops,  96, 
97;  Napoleon  III,  97;  Nantes,  congress  of  trade  union- 
ists at,  106;  national  federation  of  railway  servants, 
111;  pensions,  old  age,  117;  population,  92;  postmen's 
syndicate,  109;  public  opinion,  114;  press,  freedom  of, 
94;  Proudhon,  94;  Rambaud,  Alfred,  quoted,  115;  Revo- 


xxxlv  INDEX 


France — Continued. 

lution  of  1830,  91;  Revolution  of  1848,  91;  Rouvier, 
father  of  syndicates,  109;  school  teachers,  syndicate  of, 
109;  Sorel,  George,  adherent  of  syndicalism,  109;  Social 
consciousness,  growth  of,  91 ;  Sociahsm,  experiments  in, 
96;  St.  Simon,  94;  stable  hands,  strike  of.  111;  strikes, 
101,  102,  111;  prohibition  of  advocated,  111;  syndical- 
ism, 106-108;  syndicates,  "red"  and  "yellow,"  109; 
Thiers,  president  of  Third  Republic,  98 ;  trade  guilds, 
87 ;  trade  unions,  109 ;  Tortelier,  and  general  strike, 
108;  Turgot  and  trade  guilds,  87;  Waldeck-Rousseau, 
father  of  collective  action,  108;  war  and  labor  supply, 
98;  Weinstock,  quoted,  106. 

Franco-Prussian  War :    effect  of  on  industry,  84 ;  also  see  98. 

French  society,  character  of,  88,  89. 

Gage,  governor  of  California,  on  industrial  arbitration,  253. 

Gary,  Indiana,  character  of  population,  123. 

Gaynor,  mayor  of  New  York  City,  referred  to,  246. 

General  strike,  in  France,  108,  111. 

Georgia,  act  of  1911,  204. 

Germany :  arbitration  and  conciliation,  74-81 ;  aristocratic 
preference  among  workers,  86;  coal  strikes,  85;  imi- 
tator of  England,  62;  immigration  from  New  Zealand, 
122 ;  individual  disputes,  78-81 ;  industrial  courts,  75-77 ; 
industrial  insurance,  66;  living  among  working  people, 
86;  mercantile  courts,  76;  political  revolution  in,  83; 
revolution  of  1848,  83 ;  Russia  and  political  revolution, 
83 ;  Socialism,  83-86 ;  Socialism  and  Karl  Marx,  83 ; 
Sociahsm  and  Lassalle,  83 ;  expenditures  for  strikes, 
85 ;  Socialism  and  strikes,  85 ;  Social  Democratic  party, 
83-86 ;  Social  Democratic  Workingmen's  party,  83 ;  so- 
cial justice,  58-86;  strikes,  78-80;  trade  unions,  85,  86; 
wage  agreements,  82 ;  workers,  organizations  of  in  large 
and  small  cities,  82 ;  workmen,  American  and  German 
compared,  86;  workmen,  committees  of  in  collieries,  82; 
workers,  aristocratic  preference  among,  86. 

Gillman,  Methods  of  Industry,  quoted,  256. 

"Give  the  people  more  power,"  10. 

Gompers :   referred  to,  114,  205,  301 ;  quoted,  300. 

Government,  city  in  New  Zealand,  121. 

Government  insurance  scheme  inaugurated  in  Great  Britain,  55. 

Government  ownership  in  New  Zealand,  127. 

Grand  Trunk  railway,  strike  of,  181. 

Great  Britain :  arbitration  and  conciliation,  34-42 ;  success  of, 
42-46;  agitation  for  shorter  hours,  31,  32;  agriculture, 
27,  28 ;  Boulton,  Sir  Samuel,  referred  to,  38 ;  child  labor, 
29 ;  compulsory  service,  25 ;  Commons,  John  R.,  quoted, 
26;  craft  guilds,  discussed,  23;  education,  28;  Fielding, 


INDEX  XXXV 


Great  Britain — Continued. 

ten-hour  bill  of,  33;  hours  of  labor,  29-32;  Haywood, 
W.  D.,  visits  England,  50;  individual  disputes,  settled 
locally,  24 ;  Industrial  Council,  created,  40-43 ;  Indus- 
trial Workers  of  the  World,  gain  foothold  in,  50 
Mann,  Tom,  returns  from  Australia,  50;  machinery, 
introduced,  26-28 ;  merchant  guilds,  discussed.  22,  23 
methods  of  strike  settlement,  317,  319;  Mundella,  A.  J. 
organized  first  successful  conciHation  council,  38;  New 
Zealand  institutions  copied,  54 ;  occupations,  27 ;  Owen, 
Robert,  referred  to,  32,  33 ;  pensions,  54 ;  people's  char- 
ter, 30 ;  population,  movement  of,  28 ;  prices,  attempt  to 
regulate,  26;  statute  of  apprentices,  discussed,  24;  stat- 
ute of  laborers,  discussed,  25  ;  violence,  26. 

Greece,  immigration  from  to  New  Zealand,  122. 

Hadley,  president  of  Yale  University,  quoted,  223. 

Has  the  present  regime  done  its  work,  6. 

Hatch,  Leonard  W. :   quoted,  158 ;  referred  to,  36. 

Hatters,  agreement  of,  308. 

Homestead  strike,  investigation  of,  268,  275. 

Homesteads,  of  Australia:  148;  of  Canada,  169,  170. 

Hours  of  labor:    in  Australia,  156;  generally,  16,  328,  336;  in 

New  Zealand,  128;  in  Germany,  71,  72. 
Housing :  329,  342 ;  New  York  tenement  house  law,  343-345. 

Idaho:  awards  of  arbitration  boards,  236;  investigation  of 
disputes,  227,  229 ;  provisions  for  mediation,  218. 

Illinois :  awards  of  arbitration  boards,  235 ;  intervention  by 
state  board,  224-  investigation  of  disputes,  230;  strikes 
in,  239. 

Illiteracy,  340,  341. 

Immigrants,  housing  of,  342,  343. 

Immigration:  of  Australia,  151;  of  Canada,  170-172;  gen- 
erally, 330,  349;  duty  of  government,  328;  of  New  Zea- 
land, 122,  123. 

Imports,  of  New  Zealand,  144. 

Indemnity  act,  extended  to  agriculture  in  France,  99. 

Indiana:  different  laws  of,  202-204;  law  repealed,  255;  labor 
commission,  quoted,  256,  316;  referred  to,  223;  work 
of,  257;  state  federation  of  labor,  referred  to,  259; 
strikes  in,  239. 

Indianapolis,  street  railway  strike  of,  204. 

Individual  disputes,  in  Germany,  76-81. 

Industrial  arbitration,  problems  of,  3;  also  see  Arbitration. 

Industrial  Commission:    investigations  of,  269;  quoted,  283. 

Industrial  council:  created  in  England,  40;  report  of,  318-320. 

Industrial  courts,  in  Germany,  75-77. 

Industrial  disputes  act  of  Canada,  167-185. 


xxxvl  INDEX 

Industrial  justice:  321 ;  meaning  of,  325. 

Industrial  peace,  in  United  States  and  New  Zealand,  125. 

Industrial  questions,  and  politics,  8. 

Industrial  Relations  Commission,  work  of,  269,  270,  290. 

Industrial  upheavals,  in  England,  France  and  Italy,  7. 

Industrial  welfare,  324,  325,  340. 

Industrial  Workers  of  the  World:  165;  opposed  to  industrial 

arbitration,  208;  referred  to,  331. 
Industry:    conditions  of  in  Australia,  153,  154;  conditions  of 

in  France,  89-98;  development  of  in  New  Zealand,  121. 
International  Garment  Makers,  307. 
International  Iron  Moulders,  306. 
International  Labor  Congress,  108. 
International  Typographical  Union,  327. 
Investigation  of  strikes,  states  enumerated,  227-232. 
Iowa :  awards  of  boards,  237 ;  failure  of  industrial  arbitration, 

265;  investigations  of  disputes,  227,  229;  provisions  for 

mediation,  220,  221. 
Iron  moulders,  trade  agreement  of,  306. 

Jefferson,  referred  to,  330.  ^■ 

Judicial  aid,  free  in  France,  97. 

Jurisdictional  disputes,  17. 

Justices,  empowered  to  fix  wages,  24. 

Kansas :  act  of  1886  of  no  avail,  266 ;  creation  of  arbitration 
tribunal,  219;  investigation  of  disputes,  232;  judgment 
upon  award,  220 ;  no  provisions  for  mediation,  218. 

Knapp,  commissioner  of  labor,  referred  to,  282. 

Knights  of  Labor,  194,  195. 

Knights  of  St.  Crispin,  referred  to,  193,  194,  304. 

Labor  exchanges,  act  creating,  55. 

Labor  leaders,  character  of,  327. 

Labor  unions:    in  France,  99-109;  and  state-owned  railroads 

in  Germany,  70. 
Land:    condition   in   Australia,    148,    149;   effect  of   free   in 

Canada,  169;  problem  in  New  Zealand,  118. 
Lawrence :    referred  to,  331 ;  strike  of  textile  workers,  245, 

287;  troubles  of  settlement,  315. 
Leroux,  Pierre,  referred  to,  94. 
Limoges,  congress  of  trade  unionists  at,  106. 
Lindsay,  Judge  Ben  B. :  quoted,  298,  299;  testimony  of,  295. 
Lippman,  Walter,  quoted  on  syndicalism,  18. 
Living  wage:   in  Australia,  147,  157;  generally,  334-337,  351; 

in  Germany,  86. 


INDEX  xxxvll 

Lloyd-George,  social  legislation  espoused  by,  54. 

Local  boards  of  arbitration  and  conciliation,  in  United  States, 
216-221. 

Longshoremen,  strike  of,  246. 

Los  Angeles,  121. 

Louis  Philippe,  94. 

Louis  XVI,  87. 

Louisiana:  appointment  of  arbitrators,  224;  awards  of  arbi- 
tration boards,  236;  investigation  of  disputes,  232;  law 
a  dead  letter,  253-255. 

Lowell,  strike  in  cotton  mills,  245. 

Ludlow,  battle  of  referred  to,  294,  331. 

Lumber  industry,  of  Canada,  174. 

Ljrnn,  Mass.,  joint  boards  of  trade,  196. 

Lyons  and  silk  industry,  87. 

Maine :  award  of  arbitration  boards,  235 ;  investigation  of 
disputes,  232;  local  boards  of  arbitration,  216. 

Manufacturers:  in  Australia,  149;  in  Canada,  173,  174;  corn- 
pared  to  agriculture  in  New  Zealand,  124 ;  growth  of  in 
New  Zealand,  144. 

Markets,  and  price  control,  329. 

Maryland :  act  of  no  avail,  264;  award  of  board,  238;  investi- 
gation of  disputes,  218,  219;  provisions  for  mediation, 
218;  voluntary  arbitration,  219. 

Massachusetts :  award  of  state  board,  235 ;  Bureau  of  Sta- 
tistics of  Labor,  cited,  244;  commission  on  minimum 
wage,  340 ;  commission  on  cost  of  living,  report  of,  335 ; 
duties  of  state  board,  224 ;  expert  assistance  to  board, 
232-234;  investigation  of  disputes  by  board,  227,  229; 
local  boards  of  arbitration,  216;  report  of  state  board 
quoted,  243,  244;  state  board  commends  trade  agree- 
ment, 314;  strikes  in,  239. 

Mediation,  different  agencies,  218-225. 

Medical  aid,  free  in  France,  98. 

Mercantile  courts,  in  Germany,  Id. 

Michigan  :  arbitration  acts  of,  201 ;  law  repealed,  255. 

Military  training,  in  Australia,  164. 

Millerand,  state  employees  and  labor  unions,  109. 

Milwaukee,  referred  to,  121. 

Mine  guards,  294,  295. 

Minerals :  in  Australia,  149,  150 ;  in  Canada,  174,  175. 

Miners,  superannuation  fund  of  in  France,  98. 

Minimum  wage :  in  Australia,  156,  163 ;  in  Australia  and  New 
Zealand,  346;  enacted  in  Great  Britain,  56;  generally, 
339,  349;  in  Oregon,  339;  in  Utah,  339;  in  Washington, 
339. 


xxxvili  INDEX 

Minneapolis,  referred  to,  121, 

Minnesota :  application  for  arbitration,  225 ;  award  of  state 
board,  235 ;  investigation  of  disputes,  231 ;  law  of  no 
avail,  253,  254 ;  local  boards  of  arbitration,  217. 

Missouri:  award  of  state  board,  235,  237;  state  board  quoted, 
246;  submission  to  investigation  of  grievances,  225, 
227,  229 ;  strikes  in,  239. 

Montana:  award  of  state  board,  235;  expert  assistance,  234; 
investigation  of  disputes,  232;  law  of  no  avail,  253-255; 
work  must  continue  pending  investigations,  226;  viola- 
tions of  contract,  226. 

Nantes,  congress  of  trade  unions  at,  106. 

Napoleon :    First,  87 ;  Third,  97. 

National  Association  of  Builders,  official  quoted,  311. 

National  Association  of  Manufacturers  and  arbitration,  209, 
210. 

National  Civic  Federation,  and  arbitration:   210;  also  304; 

National  domain,  discussed,  330. 

National  Federation  of  Railway  Servants,  111. 

National  Guard,  character  of,  294. 

National  Lithographic  Association,  308. 

National  Stove  Manufacturers,  306-308. 

National  workshops,  96,  97. 

Nearing,  Professor  Scott,  referred  to,  298. 

Nebraska:  local  boards  of  arbitration,  217;  investigation  of 
disputes  by  the  governor,  231 ;  state  board  idle,  261 ;  no 
provisions  for  binding  award,  236;  submission  of  griev- 
ances by  mutual  consent,  226. 

Negroes :   in  the  United  States,  123 ;  neglect  of,  330. 

Neill,  commissioner  of  labor  intercedes  in  strike,  282,  283. 

Netherlands,  immigration  from  to  New  Zealand,  122. 

Nevada:  award  of  arbitration  board,  237;  board  created  fol- 
lowing gold  strike,  266;  investigations  of  board,  232; 
provisions  for  mediation,  218, 

Newark,  N.  J.,  121. 

New  Bedford  weavers,  strike  of,  245. 

New  Hampshire :  award  of  state  board,  235 ;  investigations 
by  state  board,  231 ;  operation  of  act  successful,  260 ; 
provisions  for  mediation,  226. 

New  Jersey:  act  futile,  256;  different  laws  in  force,  200,  201; 
state  board  quoted,  223 ;  strikes  in,  239 ;  law  repealed, 
255 ;  housing  law  of,  344. 

New  Orleans,  121, 

New  South  Wales,  act  of  1891  discussed,  146,  147. 

New  York :  award  of  state  board,  235 ;  board  quoted,  313 ; 
bureau  of  mediation,  199,  200;  findings  of  board,  226; 
intervention   by  board,  242;   investigations   by  board, 


INDEX  xxxix 


New  York — Continued. 

231 ;  strikes,  239,  307 ;  Department  of  Labor's  report  on 
unemployment,  337 ;  tenement  house  law,  343 ;  reference 
to  state  board,  148. 

New  York  agreement,  307. 

New  York  City,  reference  to  population,  120. 

Newspaper  publishers,  agreement  with  International  Typo- 
graphical Union,  301-303. 

New  Zealand:  arbitration  in,  119,  125,  126,  137;  agriculture, 
124 ;  area  compared  to  United  States,  120 ;  Austria- 
Hungary,  immigration  from,  122 ;  bank  deposits,  144 ; 
Belgium,  immigration  from,  122 ;  Canadian  act  copied, 
145 ;  China,  immigration  from,  122 ;  coal  mining,  work- 
men employed,  124 ;  debt,  increase  explained,  144 ; 
drunkenness,  134,  135 ;  Denmark,  immigration  from, 
122 ;  Netherlands,  immigration  from,  122 ;  education, 
immigration  test,  122 ;  France,  immigration  from,  122 ; 
factories  act  of  1908,  128;  government,  city,  121;  Ger- 
many, immigration  from,  122 ;  Greece,  immigration 
from,  122 ;  government  ownership,  127 ;  hours  of  labor, 
128;  industrial  peace  in  United  States  compared,  131; 
industry,  development  of,  121 ;  immigration  from  vari- 
ous countries,  122;  imports,  144;  land  problem,  118; 
manufactures,  compared  to  agriculture,  124;  growth  of, 
144 ;  Netherlands,  immigration  from,  122 ;  organization 
of  workers,  125 ;  of  employers,  125 ;  occupations,  com- 
pared to  United  States,  126;  old  age  pensions,  128,  129; 
population,  120 ;  pauperism,  136 ;  race  problem,  121 ; 
railways,  127;  syndicalism,  failure  in  New  Zealand, 
145;  strikes,  118,  138,  143,  145;  sweated  industries,  127; 
social  legislation,  126 ;  savings  banks,  127,  128 ;  shops 
and  offices  act,  128 ;  shipping  act,  128 ;  safety  in  indus- 
try, 130;  trade  unions,  126;  tobacco,  135;  taboo,  effect 
of,  11;  United  States  by  contrasts  and  comparisons, 
123-126 ;  unemployment,  136 ;  wages,  123,  132 ;  work- 
men's compensation,  128,  130;  workers'  dwelling  act, 
128,  131 ;  reference  to,  146,  147. 

North  Dakota:  acts  of,  201,  202;  law  repealed,  255;  operation 
of  act,  257. 

Norway,  immigration  from  to  New  Zealand,  122. 

Gates,  William  C,  quoted,  275. 

Occupations:  in  Australia,  151;  in  Canada,  174;  in  England, 
27;  in  Germany,  61,  62;  in  New  Zealand,  126;  in  the 
United  States,  126. 

Ohio:  award  of  boards,  235,  236;  board  of  arbitration  re- 
ferred to,  224,  313,  314;  investigation  of  disputes,  227, 
229,  230;  local  boards,  217;  provisions  for  mediation, 
227;  strikes,  239. 


xl  INDEX 

Oklahoma :  investigation  of  strikes  optional,  230,  231 ;  no  pro- 
vision for  binding  award,  236;  operation  of  law,  260. 

Old  age  pensions:  in  Australia,  152;  in  England,  54;  in 
France,  117;  in  New  Zealand,  126. 

Omaha,  street  railway  strike,  261. 

O'Neill,  a  representative  from  Missouri,  referred  to,  273. 

Order  of  Railway  Conductors,  309. 

Oregon,  minimum  wage  law  in,  339. 

Organization :  of  the  workers  in  New  Zealand,  125 ;  stages 
of  progress,  323,  324;  their  only  hope  of  change,  322; 
discussed,  13. 

Owen,  Robert:   industrial  reforms  of,  32;  referred  to,  324. 

Painters,  strike  of,  246. 

Parliament,  act  of  1872,  Zl. 

Pauperism  :   generally,  341 ;  in  New  Zealand,  136. 

"Peace  at  any  price,"  322. 

Pennsylvania:   award  of  arbitration  board,  236;  conditions  of 

industry  in,  262;  investigation  of  disputes,  232;  law  of 

1913,  263,  264;  provisions  for  mediation,  218;  reference 

to,  148 ;  strikes  in,  239. 
Pensions :  old  age  in  Australia,  152;  in  England,  54;  in  France, 

117;  in  New  Zealand,  126. 
Perkins,  Edgar  A.,  referred  to,  205. 
Personal  injuries,  in  Colorado  mines,  296. 
Personnel,  of  boards  of  arbitration,  215. 
Philadelphia,  reference  to,  120. 
Pittsburgh:   reference  to,  121;  rents,  335;  switchmen's  strike, 

.  .  281. 

Political :  conditions  in  Colorado,  297,  298 ;  franchise,  330 ; 
freedom,  discussed,  9;  revolution  in  Germany,  83. 

Population:  character  of  in  Australia,  147,  151,  152;  of  Can- 
ada compared  to  the  United  States,  168,  170,  171 ;  in 
France,  discussed,  92;  in  New  Zealand,  120-124; 
changes  in  England,  28 ;  in  Germany,  60,  61. 

Portugal,  immigration  from  to  New  Zealand,  122. 

Post,  C.  W.,  referred  to,  212. 

Postmen,  syndicates  of,  109. 

Present  tendencies,  ZZTs,  334. 

Press,  freedom  of  in  France,  94. 

Pressed  Steel  Car  Company,  strike  of,  262. 

Progressive  platform,  331,  Zil. 

Prohibition  party,  on  industrial  arbitration,  213. 

Protection,  of  German  workmen,  64. 

Proudhon,  94. 

Prussia,  and  state-owned  utilities,  68. 

Public  debt,  of  Canada,  176. 

Public  opinion,  in  France,  114, 


INDEX  xli 

Public  utilities :  exploitation  of,  349 ;  control  of,  350. 
Pullman  strike:    investigation  of,  268,  276,  277;  report  of  in- 
vestigating committee  on,  277,  278. 

Queensland,  147,  148. 

Question,  the  division  of  porridge,  2. 

Race  problem,  in  New  Zealand,  121,  122. 

Railways :  of  Australia,  discussed,  165 ;  of  Canada,  discussed, 
174;  in  New  Zealand,  127;  building  of  in  United  States, 
330;  strikes  on  in  United  States,  194;  conciliation  act 
affecting  in  England,  44-47 ;  organization  of  employees 
of  state-owned  forbidden  in  Germany,  70. 

Rambaud,  Albert,  quoted,  115. 

Rcdfield,  William  C,  referred  to,  324. 

Rent:  comparisons  of  rate  in  England,  France  and  Germany, 
48,  61 ;  discussed,  334. 

Republican  party,  and  industrial  arbitration,  213. 

Republic  Iron  and  Steel  Company,  309. 

Restriction  of  apprentices,  15. 

Revolution  of  1830,  in  France,  91. 

Revolution  of  1848,  in  France,  91 ;  in  Germany,  83 ;  results  of, 
94,  95. 

Rockefeller  Foundation,  discussed,  270. 

Roosevelt,  Theodore,  referred  to,  268,  284,  347. 

Rouvier,  father  of  syndicates,  109. 

Royal  Commission,  investigations  of,  46. 

Russia :  immigration  from  to  New  Zealand,  122 ;  political 
revolution  in,  83. 

Sabotage,  17. 

Safety:    in  New  Zealand  industries,  130;  in  Colorado  mines, 

296 ;  also  98. 
Sailors,  strike  of  in  1802,  191. 
Savings  banks:   of  Australia,  148,  165;  of  Germany,  67,  68;  of 

New  Zealand,  127,  128. 
School  teachers,  and  syndicates,  109. 
Seamen,  strike  of,  138,  145. 
Seamen's  bill,  205. 

Sherman,  Senator  John,  and  industrial  arbitration,  273. 
Shipping  act,  128,  132. 
Shirtwaist  workers,  strike  of,  262. 
Shoemakers:    strike  of,  191;  league  of,  193. 
Shops  and  offices,  act  of,  128,  130. 
Social  conditions,  330. 

Social  consciousness,  growth  of  in  France,  91, 
Social  Democratic  party,  83-86. 
Social  insurance.  329,  349. 


xlli  INDEX 

Socialism :  birthday  of  in  Germany,  83 ;  growth  of  in  Ger- 
many, 84 ;  program  of,  86 ;  in  Australia,  165 ;  experi- 
ments in  France,  95 ;  discussed,  4-6,  332,  333. 

Socialists :  opposed  to  present  industrial  order,  4 ;  expendi- 
ture for  strikes  in  Germany,  85 ;  attitude  toward  indus- 
trial arbitration  in  United  States,  208,  213. 

Sons  of  Vulcan,  192,  304. 

Sorel,  George,  an  adherent  of  syndicalism,  109. 

South  Africa,  Canadian  disputes  act  copied,  188,  189. 

South  Australia,  wages  boards  of,  147. 

Southern  Pacific  railway,  strike  on,  281. 

Square  deal,  platform  of,  212. 

St.  Simon,  94. 

Stable  hands,  strike  of.  111. 

State  boards  of  arbitration  and  conciliation,  greatest  use  of, 
351. 

Statute  of  apprentices,  24,  34,  35. 

Statute  of  laborers,  25. 

Stove  Founders'  National  Defense  Association,  306. 

Street  cleaners,  strike  of,  246. 

Strikes:  in  Australia,  157-163;  in  Canada,  181-184;  in  Eng- 
land, 30,  31,  42-45,  47,  49,  51 ;  in  France,  93,  101,  103, 
105,  107;  frequency  of  generally,  7;  in  Germany,  79, 
80 ;  in  New  Zealand,  143 ;  not  unknown  in  New  Zea- 
land, 119;  prohibition  of  advocated  in  France,  111;  in 
the  United  States.  191,  192,  196,  239-268,  275,  276,  281, 
282,  284,  285,  288-299,  316,  317,  345. 

Sweated  industries,  unknown  in  New  Zealand,  127. 

Switchmen,  state  board  fails  in  strike  of,  254. 

Sympathetic  strikes,  discussed,  16,  17. 

Syndicalism:  discussed,  6,  7,  18,  19;  in  France,  106-110; 
failure  in  New  Zealand,  145. 

Syndicates:  "red"  and  "yellow,"  109;  of  school  teachers,  109; 
land,  in  New  Zealand,  118. 

"System  federation,"  discussed,  309. 

Table :  I,  showing  percentage  of  disputes  settled  in  favor  of 
each  party  and  compromises  in  Great  Britain,  45 ;  II, 
showing  causes  of  disputes,  1903-1912  in  Great  Britain, 
50;  III,  showing  number  of  disputes,  working  men  in- 
volved, and  time  lost  in  Great  Britain,  1903-1912,  51 ; 
IV,  showing  an  epitomized  history  of  German  strikes, 
1903-1912,  79;  V,  showing  the  results  of  strikes  for 
three  years,  1909-1911,  80;  VI,  showing  number  of 
strikes  for  each  year,  1905-1912,  in  France,  with  num- 
ber of  strikers,  establishments  affected  and  time  lost, 
103;  VII,  showing  operation  of  French  conciliation  and 


INDEX  xllli 


Table — Continued. 

arbitration  act  of  1892,  for  period  1902-1912,  104 ;  VIII, 
showing  results  of  efforts  at  conciliation  and  arbitra- 
tion under  French  laws,  1902-1911,  105;  IX,  showing 
manner  in  which  strikes  were  ended  by  application  of 
French  act  of  1892,  107 ;  X,  showing  results  of  strikes 
in  France,  1902-1912,  107;  XI,  showing  success  of  arbi- 
tration and  conciliation  by  state  boards  in  five  states 
for  stated  periods,  241 ;  XII,  showing  results  of  inter- 
ventions in  industrial  disputes  by  the  New  York  board, 
242;  XIII,  showing  the  work  of  the  Massachusetts 
board  for  period,  1905-1911,  244;  XIV,  showing  num- 
ber of  strikes,  establishments  involved,  strikers,  and 
employees  thrown  out  of  work  by  states,  1881-1905,  248, 
249;  XV,  showing  lockouts,  etc.,  by  states,  1881-1905, 
250,  251 ;  XVI,  showing  methods  by  which  industrial 
disputes  in  Great  Britain  were  settled,  1903-1912,  319; 
XVII,  showing  number  and  percentage  of  members  of 
labor  unions  idle  in  New  York,  1897-1912,  338 ;  XVIII, 
showing  percentage  of  idleness  due  to  each  cause,  339. 

Taboo,  effect  of  in  New  Zealand,  11. 

Tasmania,  148. 

Taxation  in  Australia:    152;  in  Germany,  60. 

Taxicab  drivers,  strike  of,  246. 

Teamsters,  strike  of,  253. 

Telegraphers,  strike  of,  183. 

Term  of  board  members,  216. 

Texas :  award  of  board  binding  under  law,  237 ;  investigation 
of  disputes,  232;  judgment  of  award,  220;  law  of  no 
avail,  264;  no  provision  for  mediation,  218;  provisions 
for  arbitration,  220. 

Theatrical  managers,  referred  to,  308. 

Thiers,  president  of  third  republic,  98. 

Thorold  Rogers,  estimate  of  English  working  men,  52. 

Tobacco,  use  of  in  New  Zealand,  135. 

Tortelier,  and  general  strike,  108. 

Trade  agreements  :    192,  300-320 ;  discussed,  327. 

Trade,  foreign  of  Canada,  175. 

Trade  guilds,  and  feudalism,  87. 

Trade  unions:  in  Australia,  157;  in  France,  109;  in  Germany, 
71,  85,  86;  in  New  Zealand,  126. 

Trinidad,  convention  at,  288,  289. 

Turgot,  and  trade  guilds,  87. 

Typographical  union,  and  collective  bargaining,  301. 

Unemployment :   in  England,  55 ;  causes  of,  328,  329 ;  increas- 
ing, 337 ;  in  mines,  338 ;  free  employment  agencies,  338. 
Union,  recognition  of,  312. 


xHv  INDEX 

United  Board  of  Building  Trades,  304. 

United  Mine  Workers :  attitude  toward  Canadian  act,  188 ; 
campaign  in  Colorado,  288;  character  of,  291;  dis- 
cussed, 327;  recognition  demanded,  290,  291. 

United  States :  agriculture,  mining  and  manufacturing  in, 
125 ;  foreign-born  population  of,  123 ;  devices  for  arbi- 
tration and  conciliation,  239-267 ;  immigration  from  to 
New  Zealand,  136 ;  Colorado  coal  strike,  288,  299 ;  initial 
experiments  in  arbitration  and  conciliation,  191-214; 
interstate  strikes,  268-287;  legislation  in  on  arbitration 
and  conciliation,  215-238;  occupations,  126;  land  prob- 
lem, 149;  trade  agreements,  300-320, 

United  States  Steel  Corporation,  308. 

United  Typothetse,  303. 

Utah:  awards  of  arbitration  board,  236;  investigation  of  dis- 
putes, 232 ;  law  of  no  avail,  253,  255 ;  minimum  wage 
law,  339;  submission  of  grievances,  227. 


Van  Cleave,  James  W.,  referred  to,  212. 

Vermont:  arbitration  law  of,  227;  award  of  board,  235;  ex- 
pert assistance,  234;  investigation  of  disputes,  227,  230; 
law  enacted,  261. 

Victoria,  wages  boards  of,  146. 

Violence,  26,  294. 

Vocational  education,  329,  330,  339,  341,  349. 

Voluntary  arbitration,  216. 

Von  Schulze-Gaevernitz,  Dr.  G. :  referred  to,  27;  quoted, 
31,  53. 


Wage  agreements,  82. 

Wage  boards,  155,  157,  159,  162.  164. 

Wages  and  living :  334-337 ;  discussed,  15 ;  in  Canada,  173, 
174 ;  in  England,  25 ;  England,  France  and  Germany 
compared,  48 ;  New  Zealand,  123 ;  New  Zealand  and 
United  States  compared,  132-134. 

Washington:  awards  of  arbitration  boards,  236;  provisions 
for  arbitration,  218 ;  investigation  of  disputes,  232 ;  pro- 
visions for  mediation,  218;  act  of  no  avail,  264;  mini- 
mum wage  law,  339. 

Weinstock,  Harris,  quoted,  156. 

Western  Federation  of  Labor,  and  Canadian  disputes  act,  188. 

Western  Federation  of  Miners,  referred  to,  209. 

Westinghouse  plant,  decrease  in  labor  at,  330. 

West  Virginia,  coal  strike  in,  287. 

Wisconsin:  housing  law  of,  344;  industrial  commission,  200; 
work  of,  266,  267;  state  board  of  arbitration,  work  of, 
267;  awards  of  board,  236. 


INDEX  xlv 

Workers:  aristocratic  preference  among,  86;  dwelling  act  of 
in  New  Zealand,  128 ;  organization  of  in  large  and  small 
cities,  82;  welfare  of  in  Australia,  146;  committees  of 
in  collieries,  82 ;  American  and  German  compared,  86. 

Workingmen's  Association,  founded,  30. 

Workmen's  compensation,  82,  128,  130,  131. 

Yonkers,  street  railway  strike  at,  246. 


This  book  is  DUE  on  the  last  date  stamped  below 


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